Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 15 years ago,

User Stats

1,991
Posts
1,135
Votes
Sharad M.
Pro Member
  • Carlsbad, CA
1,135
Votes |
1,991
Posts

How much would you pay for this building?

Sharad M.
Pro Member
  • Carlsbad, CA
Posted

Hello all,

OK so it's a 8 unit building with 6 3br units and one 2 bd and 1 bd each. The rent is as follows:

Six 3 brds - $825/each (tenant pay their own utilities)
2 bd - $650 (tenant pay the utilities)
1 bd - $700 (owner pays the utilities)

Total rent of $6,300/mo

The taxes are $6,500 for 2009. The property is on a main street. The property is in decent part of the town. The seller is asking $650,000 for the property. I am looking at the property tomorrow, but from the pictures, it looks in decent shape.

Can I use the 50% and 2% rule on a commercial property? If yes, using 2% I get a purchase price of $315,000. I looked up the property's info on Lexis Nexis, and it shows that the seller has a loan of $360k against the building. But on the county's website, it shows assessed value of $167,200. The appraisal is as of Feb. 2008. If anything, the assessed value is even less. I am little confused as to why these amounts are so off.

What would you guys offer for this property?

Loading replies...