Formula For Calculating Value From Rent
I have heard of a formula to determine the value of a property based on the rents. I cannot seem to find it. Does anyone know what this formula is? Also, is it the same thing that shows you how much increasing rents would increase the property value?
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I am actually looking to see how much you should pay for a multifamily home. So if the rents are $2500 (utilities ex.), how much should the sales price be retail. Also, someone showed me a formula but I dont have it anymore where they said if you increase the rent roll by $10 a month, then the value should increase $X. Any help greatly appreciated.
If you decide to invest in Pensacola, Fl I would love to help you manage your properties. We currently have over 600 rental units with a full staff maintenance and admin crew.
If I can be any help just let me know.
Jguidroz
Sun Stone Properties
Usually the area regional mls posts various reports reflecting sales trends/statistics.
Another site with good info is www.dqnews.com - I know these by heart but there are others - another is marcus and millichap??? not sure what the site is but im sure you can google it. Another good source would be the local assessor - depending on the assessor sometimes they post comps too. Good luck.
LOL !!! I should have started my kids younger.