excellent responses. This one should be pretty straight forward, it's a 4 plex. Needs about 30K in rehab work... you take market rents, it will take 1 month to finish the rehab and 3 months to rent (my guess) area is running 92% occupancy, but I'll use 45% vacancy (3 months vacant + area runs about 10%), variable expense will be adjusted for time used by any tenants 9 months that 1st year, fixed expense are fixed. I compile this data to find NOI, use a 12 cap since there's time risk to get rented, I'll then subtract rehab costs from the price since this shouldn't be part of the NOI income stream (one time rehab) and voila, there's my price. Hold 3 years so bank sees stablized property for easier financing options for another investor but use a lower cap about 9. Thank you all.
