Buy Property
Get a Property Valuation
Get a Full
Market Analysis
If you are planning to purchase a rental property, consulting a knowledgeable commercial agent will help you make a well informed decision. Let Angelo and his team conduct a full analysis on the property you are looking at to make sure you are making the best decision.
Are you considering purchasing multifamily property as an investment? Buying apartments can be a great way to earn revenue! However, the purchase of multi-unit properties can be a complicated process. A full market analysis will be provided to better inform you of your choices.
Market Analysis
Includes Considerations On
Upside Potential
An income property with “upside rent potential” simply implies that its rents are lower than what the market will bear and the “potential” to collect higher rents and generate more income are a real possibility. To the real estate investor analyzing the income property it means, “hold on, and don’t make any decision to pass on the property until you’ve reevaluated the cash flow based on several other rent scenarios”.
Rental Income
The first thing when considering the value of your building is its rental income. The rental price of each unit and the type of unit that rent is being paid on is one of the most important factors when considering the value of your building.
Tenant Profile
Does your building have long term tenants? Are the units vacant? How long since the last tenants moved in? These are all equally important questions to consider when valuing a building. Long term tenants make it hard for an investor to control the buildings “pro-forma” or potential market rate income. Vacant units are more appealing because the new owner gets to set the market rate for the building, but having a vacant building or more than a few vacant units makes it harder to get a loan.
Building Size
The larger the building, the higher the value. However, we must also consider the price per foot and the price per unit on buildings. Different metrics tell different things about the building. For example a building with low rental income will usually depict a low price per foot while a building with a high price per unit will speak to an owner user opportunity as the units may be of larger size.
Property Condition
Generally speaking the better the condition of the property, the higher the value. This holds true with almost any real estate. Investors like to see clean buildings because it shows that the previous owner took good care of the property. Sometimes all a property needs is some minor cosmetic touch ups to add the last bit of value for a sale.
Sales Comparables
Lastly, after the financial analysis has been completed, we will look at comparable sales in the area. Apartment buildings comparables differ in many ways. No two buildings are ever alike, and each building’s rental income is different. We must take all of this into consideration when looking at sales comparables.
Are you in the market for a
multifamily or commercial property?
Let us know what you’re looking for and we’ll help you find it!
Buildings of any size are welcome.
Fill out the form as completely as possible, and you’ll hear back soon.
The Process
First Meeting
Let’s talk so I can learn about your needs.
Reviewing Properties
Assess the available properties on the market.
Making the Offer
Invest with confidence
Due Diligence Process
Inspections, reports, financing
Close
Preparation will ensure a smooth transition
First Meeting
Let’s talk so I can learn about your needs.
Reviewing Properties
Assess the available properties on the market.
Making the Offer
Invest with confidence
Due Diligence Process
Inspections, reports, financing
Close
Preparation will ensure a smooth transition
First Vice President – Investment Sales | DRE# 01996324
Marcus & Millichap – San Francisco Office