Case Study: How to analyse a multifamily building

RENTS Executive Mike Moore has been putting out awesome content for all of us to learn from, even while he is enjoying his winter in sunny Australia.

"would you pay?

“Owning Up” – Confessions of a Real Estate Investor

How much would you pay?

Three years ago, I was approached by a newbie investor about a multi-family property in Prince George. He wanted to either Joint Venture with me or receive a finder’s fee for showing me the property. I was intrigued by the property, especially when I was told the asking price.

The building is a three story walk-up with six units – five two bedroom units and one one bedroom. It was purchased by investors from Vancouver several years earlier for $250,000 and was currently on the market for $219,000. The newbie whispered that this property could be had for $200,000 to $210,000. $35,000 per door, my response – show me the property and show me the numbers.

Before we continue, take a guess, is this a bargain at $210,000? Way too much at this price? Or just about right?"

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