Using just this info provided, How would you value:

Portfolio of (2) properties. These two properties are mixed use (70% residential 20% office/retaail 10% shop space). About 14 units total.

They are in central business district of a town with a stable, slightly growing, economy.

They have stayed occupied for last 10 years...never any significant vacancy at all...

I have personally managed these properties...they are nice properties, very very easy to manage.

Potential for 10% rent increases.

No significant deferred maintenance at all, these properties have been kept nice.

Not including debt service:

Annual rental income: $110,000

Annual expenses: $45,000

14 units total. About 55k net annual income presently. Unless my math is wrong, that's about $3900 annually/$327 per month per unit?

Room for 10% increase, but that will potentially lead to SOME vacancies as a 10% increase is a lot to a single tenant.

NOI / Cap rate = offer price.

Gross income $110,000/2 = $55,000 is your NOI

So, as a smart buyer/investor, if we use a 10% Cap rate we have :

$55,000 NOI / 10% CAP RATE = $550,000 purchase price

You claim rents are low, if increased 10%

Offer price would be $605,000.

Depends on your market, condition etc.

If we use the 1% rule, you're looking at low $900,000

I think my math is correct. What price are you planning to list for ?

Most of the time, while investors and buyers play the "current" value game, I look at the hidden potential. I purchased a "bird" house next door to a partnership property I owned with other investors. I had only a 20% interest. None of the partners wanted to buy this tear down next door. In fact they reported me as the slum lord new owner. I was ordered by the City to remove the eyes sore.

My plan had worked. Ordered to remove the structure, ending with raw land, and was able to take an accelerated deprecation schedule for the shack. Instead of the 27.5 depreciation of 5K per year, I got to write off $30K over the next 5 years.

So by then the partners wanted to sell the building, 16 units. With no parking the offers were low. I chimed in to an investor, I own the lot next door and it's permitted use is for parking. Enough room for 20 plus cars.

The rent for a unit with not parking was $795. With 1 parking spot next door with a gate access each other, the rent for an apartment with parking $975. This was an extra $35,000 per year of rent and added $450,000 to the value of the 16 unit.

7x net is where the buyer is going to want to be

10x net is where I would as a seller

14x net in a hot market

Get a commercial appraisal and then you’d have some

Thing to show a buyer

Last one I did was $2400

Every thing is local so it just depends

Ken ((NY) is going to buy it from you for a 100k with owner financing at 0%. lol