Newmfbuyersf1, Home Buyer in San Francisco, CA

When listing a multi family for sale thats owner occupied, do you include the owner-occupied units estimated rent as part of the income potential?

Asked by Newmfbuyersf1, San Francisco, CA Sat Dec 8, 2012

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Jed Lane’s answer
There are two rent numbers that are often quoted, the "Pro-forma" and the "Actual". Pro-forma is the amount the property could generate if all units were rented at market rents. The Actuals are obviously the amount actually received by the owner .
If the owner is occupying one of the units that should be noted and a pro-forma number given. Either way that you do it you should be able to give the actuals to the interested buyers when you enter into contract. The buyer will want to see the actual expenses and incomes for the property.
1 vote Thank Flag Link Sat Dec 8, 2012
Jed Lane, Real Estate Pro in San Francisco, CA
Yes. If an investor wants to purchase your property he will also rent out your occupied unit as well.
1 vote Thank Flag Link Sat Dec 8, 2012
Yes, all units are included for estimated rents as part of the income potential.
0 votes Thank Flag Link Sat Dec 22, 2012
Yes, projected rent is often used for situations like this but the rent should be supported by local comparable units.
0 votes Thank Flag Link Tue Dec 18, 2012
Yes you should include the owner's unit market rent.
0 votes Thank Flag Link Sun Dec 9, 2012
Yes, you should include the current market rent for the owner's unit(s) in your income calculations to correctly estimate the property value.

Oggi Kashi - 415.690.3792 direct
Broker Associate, Paragon Real Estate Group CA DRE 01844627
All data from sources deemed reliable but subject to errors and omissions, and not warranted.
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0 votes Thank Flag Link Sat Dec 8, 2012
As pointed out below, yes. If you are thinking of listing a San Francisco multi-unit building we are experts in this type of property and have a great program for sellers. Contact info below:

Best Regards,

Lance King/Owner-Managing Broker
DRE# 01384425
0 votes Thank Flag Link Sat Dec 8, 2012
Yes – investment ratios need to be calculated with 100% projected occupancy income. However, you also clarify that it is projected income and currently owner occupied.
0 votes Thank Flag Link Sat Dec 8, 2012
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