All Forum Posts by: Rikard Lorén

Hi Chris Carollo !

Great pointers Chris  ( checking out the property of violation and history ) but taht is not my main question for now. 

So how do u evaluate a vacant building ?

Hi Chris Eaker !

I have no idea why it is completely vacant, they have just renovated it.

I would calculate something the same as you but that would be a retail price, will not ever buy retail.

If I would actually buy it, the root cause of the buildings current occupancy status would be step number 1, yes.

But this post is just how you calculade/evaluate a price for a vacant property.

Hi Michael !

Don't know for how long the property have been vacant, dunno why either.
Yes I can, they post it in the ad, but why would I buy retail ? Will never buy retail. 

It dosen't need rehab becouse they already did it, I have no idea right now, but my question is just all about the valuation....

The ad says that it's new/new fixed. The ad is for a 3-unit but the 10 was just an example so i could get the value on the 3-unit in the ad.

Renoverad hyresfastighet med centralt läge i Virserum. Fastigheten består utav 3 stycken lediga 2:or som är nyrenoverade. Fastighetens fasad är nymålad och taket är omlagt. Uppvärmning via direktel. Kommunalt vatten och avlopp. Taxerad bostadsyta 180 kvm. Hyresintäkt vid full uthyrning ca 110 000 -145 00 kr/år i kallhyra. ( swedish )

Renovated Rental building woth central location in Virserum. The property contains 3 units ( 2 rooms ) taht is newly renovated. The outside of the property is newly painted and the roof is rearanged. The heat comes from direct-electric. communal water and sewer. Taxed living area 180 square meters. Rental Income with full occupancy is around/circa 110 000-145 000 sek/yearly, coldrent/the renter pays for utilities.

Note that it says WITH FULL, yea, but if I would buy it NOW, then I would not have a single rent income NOW, so how do I buy the property for a fair price ?

Hi !

If i'm looking to buy a apartment building with 10 units and 0 units are occupied, how do i put a value on the property ?

I mean if u valuate on the normal way NoI / cap rate =value u will end up with a really small value compared with the same building with 10 tenants? or can't you put a value on a building with no tenants?

Alright, thanks for the input Nick !

Hi !

I just wanna hear you guys out what you are considering a "bad neighborhood".

So, in this picture it is as follows:

Green Circle = Rental unti/estate
Orange marking = Bad neighborhood in general
Red Circle = a shooting a few months back with automatic weapons.
There's a highway between the orange line and where the green apartment house is, about 500 meters in distance and 2000 meters from where the shooting took place. 

Question: Would you consider that the rental house is in a "safe" area or in a unsafe area ?

The Area where the rental house is, is surrounded by a single family home neighborhood, if it matters.

So, Would you buy a rental unti in the area outside the bad neighborhood ( as in the picture or would you avoid the whole district and look in another one ?

No problem Michael !

Hello Acencion !

I guess that it all comes down to what return on your investment that you'd like to have.
I mean, you already have the deal/free money in sight. I'm not into flipping thought so I can't help you with the calculation.

Hello Taylor !

First thing first: Check out the Ultimate Beginner Guide here on BP: Education--> Guides-->Ultimate Beginner Guide to get some understanding on the different aspects of investing. When you know what you want to do, begin focusing in that particular subject and learn as much u can about it.

When it comes down to diversifying investments, I guess that u are asking what kind of Real estate investment that people here choose to diversify, since this is a RE Forum. From what I have been reading it seems like people choose a niche and focus only on that and when they master that niche, they spread their wings into other niches and start "diversifying".

From my perspective, you will not really start diversifying until later on, you will start with 1 and only 1 niche and try your best to master it.

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