@Carlos Casanueva I wouldn't do the deal either but let me offer this food for thought. There is no cookie cutter way to look at a deal. For example, in the case where an investor is buying an unoccupied property to rehab it and then reposition it, then that property would have a zero NOI. He or she is not going to get that property for free. There is a price that the investor is willing to pay for it depending on their risk profile. If you were to value this investment, you would have to base it on a forecast and discount it for the risk associated with hitting the forecast. Not saying this is what you or I may do but the point is that there is more than one way of looking at an investment and only time will tell if that investor made the right choice.
