Showing a business plan that confirms the demand in the local market is real important.

Since the debt markets are dynamic in nature as related to interest rates and debt structures cap rate is the one constant that can be used as a guide to compare the deal to current demand.

Assuming that there is actual demand for the type of property another way to understand the value is to determine what it might cost to rebuild.

$8.07 $7.35 Long term Government backed agency leases High demand rental type 3 to 5 year leases on 50% of the complex Excellent cash flow Estimated Expense Summary Actual Pro Forma Projected Taxes $72,490 $72,490 Insurance $12,131 $12,131 On-Site Management $30,000 $30,000 Trash $5,131 $5,131 Cable $1,708 $1,708 Maintenance $33,402 $23,270 Repairs $15,201 $6,090 Advertising $6,809 $4,074 Legal / Professional $7,483 $2,658 Administration $8,317 $8,317 Permits/ Licenses $1,104 $1,104 Telephone $18,294 $18,294 Payroll / Benefits $112,943 $105,250 Security $17,780 $17,780 Miscellaneous $19,896 $19,896 Utilities $143,030 $136,000 Workmen's Comp $5,388 $5,388 Auto Expenses $2,000 $2,000 Pest Control $716 $716 Furniture $4,356 Totals $518,179 $472,297

I'm a music producer/engineer/songwriter (a successful one, thankfully :mrgreen:) , getting into REI as a source of supplemental income, although the more I learn about it, the more time I'm interested in investing in it, so who knows, maybe one day the percentages will be reversed...

Demand for commercial is specific to the use/zoning.John Corey

But, it would not fill the gap between domestic supply and demand.Short of some major breakthough, such as making the algae based approaches work easily and cheaply, methane hydrates, or the "abiotic oil", I don't see anything that's going to happen to dramatically change the worldwide demand vs. production picture.

At that time, my current job would pay me 70% of my salary at the time...I also have my 401k and IRA to supplement that to (hopefully) pretty close to 100% of that salary.Like I said, I just turned 39.

Remittence of wages back to families in Poland, reduction in housing demand in Poland, people investing back in Poland as a long term investment all could be factors in specific cities.

Sure buyers are in demand and sellers are unresonable..