How to find the true value of a commercial rental property.

[Brian Brown]

Looking for input as I crunch some numbers. I'm new to commercial real estate and trying to learn as much as possible on how to evaluate a property's price/value. From what I've seen to get there is take NOI/Cap Rate = prop. value but Cap Rate = NOI/Prop Value. But how do you know what the property value actually is to use in the equations. I ask this as I found a property that is asking $900k with 24 doors has an avg NOI the past two years of $43,532 as they have been upgrading 11 doors, parking lot and painted the building. It was purchased for $470k in 2016 and $425 in 2014. Thanks in advance for any information and help.

[Brian Brown]

Great info Jeff, Thank You