Real Estate Valuations Post Covid
Let’s say someone bought 10 units in 2019 for 1.2 million dollars. Each unit renting for $1,000 a month. He made 10k in gross income and after expenses his net operating income was 6k a month. The mortgage payment was 5k, leaving him with cash flow of 1k a month. OK, so a fairly good deal, certainly many investors would have done that deal in 2019 as the commercial property market was hot.
Then covid hits and 2 renters move out. A third renter has asked for forbearance and a fourth renter is not responding to calls or answering the door. So instead of making 1k a month our investor is now losing 3k a month. He is paying handsomely to own this investment property.
Skip to content
