Posted by rachel on December 19, 1998 at 18:47:52:
With all four units rented for 600.00 p/m and expenses being only 400.00. The cap rate @10% value comes out to be $200,000.00. If there is no offer yet and If I were you even thoug you feel this person is a friend or what ever, I would still put down on paper an offer for less. You are not going to hurt the other persons feelings. When it comes to business, he will either take it or not. He will still be your friend. Dont be so fast to just get the deal, get it in your favor. You never know, you may help this person get a good deal on his venture into the next one.