Here are some quick numbers for context.Purchase totalAfter RenosYearly RentsCap Rate (pre costs)Cap Rate (- $300 IRS, PM, INS)$62,240.00 $64,890.00 $11,760.00 18.12%12.58%$71,280.00 $71,530.00 $9,516.00 13.30%8.27%$37,116.00 $39,116.00 $10,500.00 26.84%17.64%$58,857.00 $59,857.00 $12,000.00 20.05%14.03%$49,501.00 $56,046.00 $10,740.00 19.16%12.74%All in, we're interested in any creative financing - traditional refi, portfolio loans, DSCR, HELOC.

They will often want a new building constructed and building today with labor and materials is very expensive versus retrofitting existing building.When I buy value add vacant buildings the goal is to double the return on investment within a 3 year period.So if I can use the existing building and retrofit to same concept ( example previous burger inc. but now Whataburger wants to come in ) then not as much tenant improvements to convert.So if rent 20 a foot for 5,000 ft that is 100k NOI NNN a year. 7 cap value is about a 1,400,000 stabilized valueSo if I buy it for 400k and have 300k in it more 700k to get new tenant in the value is then around 1,400,000 based on NNN 20 a foot and a 7 cap rate exit value.If you want a premium price then you would need to sell to an end user tenant ( regional or national in nature) that wants to buy the building and put their concept in there.

So much so that the formula to determine the value of a commercial property is Net Operating Income / Cap Rate = Property Value. 

   =)  there were rehab loans available for a while for 0% interest, which was cool... but there was a cap on the number of properties you could own and be eligible for, which i was above.so we need some kind of catalyst or incentive. 

Another important piece: you will not be in long term cap gains. 

Your CAP rate will be dangerously inaccurate Good post.

It's not mandatory but I was putting on my thinking cap and was thinking how to maximize the space that I have.

It is popular amongst investors because you don't get capped at a certain amount of products, it requires less paperwork, and it doesn't look at DTI/taxes/income.

Well I think generally the first question would be, what are the cap rates for the area?

But in 2023 hoarding cash could yield almost similar appreciation.In 2010 era, typical asset class cap rate : 10% ; typical asset classs in 2023: 4% Summary: by converting real estate equity to cash/debt position from 2023 and forward, as long as rate of appreciation is less than inflation, we don't actually lose that much.So yes selling everything real estate is making sense in 2023 as well.