Posted by Natalie-VA on June 27, 2007 at 09:16:24:
My experience is only in residential, but I would look at this one from an income approach and work it backward. Put yourself in the investor’s shoes and figure out all of the monthly income and expenses including professional property management. Remember that professional property management on a seasonal rental is going to be more intensive and expensive.
Next, figure out how much cashflow you want on top of that and the number left should show you how much you will need to finance and/or put down on the property.
I would also take into account a discount if the property is vacant and needs repairs.