Posted by rudy on April 04, 1999 at 08:56:42:
In appraisal you use the income and replacement method…rudy-austex
VALUATION: Mixed-use Building - Posted by Tom R
Posted by Tom R on April 04, 1999 at 07:08:37:
How do I figure the value on a mixed-use building?
Looking @ a building 3 apartments 2nd floor 100
seat diner 1st floor. Is there a formula/rule of thumb for such a propert?
Thanks
Tom
Value is subjective. - Posted by Andrew Smith (Phila)
Posted by Andrew Smith (Phila) on April 05, 1999 at 06:00:43:
Value is subjective and influenced by perspective. For example if the diner was vacant and you wanted to operate a diner the building may have more value to you than it would if you were looking at it as a income producing property (which is how I look at it). Also, no matter what perspective you look at the property from there are factors that influence its value such as its condition and location. Generally, income producing properties in good neighborhoods with very stable or rising prices will sell for more than income producing properties that produce the same income but that are located in unsafe or uncared for neighborhoods. I buy multi-family and mixed use properties that need work but that are located in good areas. Generally my properties have been neglected and/or mismanaged and I normally pay 5 times net income or less for them. Good luck and feel free to e-mail me by clicking on my name if you would like more specific information.