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Updated over 8 years ago,
Income Valuation Approach For Analyzing and Offer Price
Hello All,
I'm using a recently sold comparable property to analyze an offer price.
Here's the situation:
These are both similar duplexes.
Cap Rates for both properties are 6%. The comparable (recently sold) property has rental income that is $150 more than my target property.
For the sake of the example we can say that the first property sold for $375,000
Can someone show me how to apply these numbers to determine what discount would make sense on the offer price?
Thanks!