Posted by Jim Rayner on December 05, 2000 at 18:14:41:
Homer,
Go to the money making ideas page at this site. There you will find a 4 part series by Doug Ottersberg. While it focus on manufactured housing communities the process of evaluating a multi unit deal is the same. There are a few analysis products on the market ranging in cost from ~$ 300 to $ 1000 a copy. There are also some new products that are about to be marketed in next few months that might be less expensive. The process is not that difficult in terms of the mathematics but an understanding of the process is often the harder part.
The depreciation on a particular deal does not enter into the valuation of that deal however it may influence your decision as to whether or not you make the deal depending on your over-all tax situation. The depreciation taken becomes an important factor in the determination of your exit strategy from the deal. You never enter into any deal without a game plan for both the entry and the exit and each end of the deal should have multiple options.