4 Plex

[PropertyEconomics]

Remember your $145,000 is for a VACANT property that needs some work. There are no leases being transferred as part of the sale and as such the selling price would be below that of which would be typical for the area. Use of proxy rents will certainly allow you to get the appropriate GRM, however, I think your analysis would need to be very careful as to measurement of forecasted rent for your subject. What are vacancy rates in the neighborhood? Are there similar rentals in the area for both the two and four bedroom units? Will the purchaser need to replace the carpeting and do the cosmetic repairs prior to lease? How long do you forecast the lease up to take?
All would be important questions to answer when developing your market approach and comparing the sales to your subject.

Best of luck.

 

[Mike Boyd]

Don,

Very good. That is the same approach i use.

Brad

Likewise. However, I did not call it income by proxy.Now I guess I can call the method acceptable appraisal theory.

 

[Don Clark]

Don,

thanks, I learned something new today. Now, just to be sure, since you and I are getting a little grey. Are you sure your remembering this correctly?

Carney,

Yes, I do remember BTW, when I had a near fatal neurological event at the end of January this year, from which I am now 99% fully recovered, I had 2 MRI's and a bunch of other stuff. I went to see an interventional radioligist last Friday as a floow up. I learned several things at the visit:

1. I absolutely do have a brain, the MRI proved that.

2. The radioligist said I was the youngest looking 71 year old he had ever seen:icon_mrgreen:

3. He said my brain was in perfect condition, unaffected by:
(a) Smoking
(b) Booze

4. I was likely not to need any invasive treatment

Now, if I could just remember where I put my glasses?????

 

[Financially Feasible]

4-plex for $145,000.
The price already tells me that I go there early in the day for the inspection, and then be ready to get the heck out of the neighborhood.

Oh no, I assumed. Appraisers should not assume.

"Assumption is the mother of all f-ups."

-Under Seige 2

(edited for content :icon_mrgreen

 

[nahrin]

ask for a copy of property inspection. it might have substantial termite work. it happened to me.