. :) List Price is $1,700,000 and I want to calculate the value Numbers they provided:Gross Income           $219,600Operating Expense   $152,253NOI                            $204,346NOI/Price = Cap Rate$204,346/$1,700,000 = 12%Building ValueNOI/Cap Rate= Building Value204,346/.12=  $1,702,833  Final answer, how does my math look?

Do your math and protect your downside.

I mention this as you have to do your homework on every property you wish to bid on, when maybe, 1 out of 5 are actually sold to third parties.  

Note: investor already has 5+ properties.Seeking to expand without having to add "new money" to invest in the business, want to have existing properties to fully pay for expansion.Preliminary homework performed and in both instances property needs to be bought for cash:* With delayed financing, investor can recoup funds spent on purchasing but not on repair.

To make sure you've done your homework, you've definitely come to the right place.

I'm not a math expert but that means I have to double the value of a california rental property (appreciation) to match the current rents of my chicago house.

Jeff P, if I've done my math the same as yours here... you're very right... very skinny deal with the ARV I've mentioned.  

Here is a recent local article on some ideas from city council candidates: http://www.citizen-times.com/story/news/local/2015...and another recent article from another well read local paper: http://mountainx.com/news/homework-solving-ashevil...The housing fair this month also focused on affordable housing and was very well attended. http://ashevillehousingfair.comHope that helps!  

Look up MAO here on BP and brush up on the math if you're not sure what a good deal is yet.

My advice would be to do your homework on exactly when any work has been done on the building (our "turn-key" building was not so turn-key), obviously have a really thorough inspection done and inquire as to how existing tenants are.