Dec
20
How To Get Commercial Property Comps?
ByRealtors Opinion needed.
Ok. I am a TX Realtor/Investor in Austin. I can run my comps when looking for a residential property that I can rehab & flip. Well, I decided to dabble in the commercial investments like multi-family apartments of buildings needing rehab & flip. Can someone tell me how to run those comps. Are they like running comps for residential? Do I find properties within 1 mile or futher, within 6 mos.,1 yr or more? NEED HELP. I have the funding, but no property:(
1 Comments
December 20th, 2009 at 4:15 am
Commercial properites are not valued the same way residential properties are. Commercial properties are based on the cash flow, not what like properties have sold for. Consider two similar multifamily properties in the same neighborhood with 6 two bedrooms units each. One has longterm steady tenants who pay $850 a month for rent, the other has high vacancies and below market value rents. Which property is worth more?