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Updated almost 7 years ago,

User Stats

170
Posts
158
Votes
Nancy DeSocio
  • Rental Property Investor
  • Cranston, RI
158
Votes |
170
Posts

Do you include garage income in property analysis?

Nancy DeSocio
  • Rental Property Investor
  • Cranston, RI
Posted

Good morning!

We might make an offer on a multi-family property, and it's not a great deal (wait...don't judge me yet!).

What makes the property unique is that there is a separate 6-car garage in which all of the garages are currently rented out (not to the tenants) for an additional monthly income of $725.  I'm intentionally leaving out a lot of the details, because my question is more general. When analyzing a property like this, would you include the garage income in the analysis?

If I run the numbers ultra-conservatively, assuming all garages are vacant with no income from them, the property would make about $350 cash flow monthly with 5.5% cash on cash and 6.5% cap rate (I know, not impressive). But analyzing the property with the garage income seems like a game-changer.

I'm appreciative of any feedback the BP community has to offer...thanks!

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