As of now, I am in the nascent stage of planning but I am leaning towards rental income using a NOI/cap rate approach to derive my values.Joel - I think a single family rental would be the best place to start but I welcome all ideas.Tiffany - I'm afraid I cannot answer your questions for I am not at that stage yet.

., CoC = all the income derived from the investment per year, divided by your initial money down + all subsequent expenses in that same year, x 100 (expressed as percent).eg.

His $420 pm income was derived from the fact that he used $700 per month rent multiplied by .6 (for vacancy and repairs) to come to $420.Regards,Azeez

It also sounds like you want to derive a purchase price for the building out of a cap rate, for which you need a lease rate so again, what are market lease rates?

I am deriving no cash flow right now.I am looking at the long term value of this property, and if I can't fill it with commercial tenants, I really have to consider residential and I am open to answers and tips from anyone who's converted a property from commercial to live/work.  

Also, any property from which an income is derived that does not fit the residential guidelines is, by default, treated as CRE.

v=WshxmT3Fawo"Derivatives" on any financial institution's books means OPM (Depositor/Investor/Lender/Fed/Treasury) vested deeply in LBOs, "High Yield" Bonds (AKA "Junk"), ETFs, puts/calls in equities/commodities/currencies, and a lot of real "derivatives" (bets based on equations in every manner of index movements) and all other sorts of investments which would make a Depositor or "Investor" run for the hills if it were more clearly described.

Packing tenants in is another fraud, landlords just allow people in at very low rents, even none and claim higher rents off that building (really derived from other properties) and sell the ongoing business, the tenants pay a higher rent after the sale for awhile or just move out.

Typically, they pay 5%.Seriously though, the "wiifm" attitude that you may sense from realtors may derive from their need to have a career and earn a living, not just because they are selfish.Just a thought.

I believe the company guarantees the rents based on the subsidy derived from the insurance claim.