This limits what I can do for exterior renovations.Biggest advantages for commercial office space are tenants that will sign multi-year leases, less personal drama, and a simple formula to value the property.The biggest downside is the potential for longer vacancies.

It is easy to use, you just change the purchase price and renovation expenses, the rest is going to be calculated by my formula.

What hurts Investors that use this formula is it does not account for Holding Costs, Backend Selling Costs, etc.I use the following formula to determine my Maximum Allowable Offer (MAO).

Thank you to everyone.Tim, I had this long response detailed out to get things down to a few conceptual mathematical formulas based on some of your points, but I deleted it. 

BP,The Los Angeles market is very unique; I’m looking for some insight into what formulas you all use and what different criteria’s you have.Any insight is very much appreciated!

Attracting better tenants is a formula.

I have one written down and think its quite decent.Is there any set formula that someone can provide as to how to compose the sentences?

Remember there are investors that don’t all use the analysis formula that we use here on BP.

I also have a formula that I use to calculate my offer amount.MAO (maximum allowable offer) = ARV-Flippers Profit-repair costs-fixed costs-wholesale feeThere are other variables used here but this is the bulk of it. 

What hurts Investors that use this formula is it does not account for Holding Costs, Backend Selling Costs, etc.