hi, i have spent the last year in a half studying my multi -family market as well reading any and everything i can on the subject. What is the best way to evaluate a propertyfor a selling price? Is there a rough number i am looking for on the return(i.e. positive cash flow) Thank you for any and all help.
sid,
Not sure what you are looking for. You mention both cash flow and selling price.
Rental property owners are interested in cash flow. If this is your thing, check out the Cash Flow Analysis spreadsheet available on this site (Resources Tab – Real Estate Forms).
If you are looking to flip property, then I guess you would want to estimate your potential profit from a likely selling price. You can get comps from your local real estate agent for 2-4 family buildings.
For larger multi-family projects, a capitalization rate calculation would suggest a fair market value. Gross Rent Multiplier is another quick and dirty estimating tool you can use to approximate a property’s value.