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
Jed Lane, Agent, Petaluma, CA
Sat Dec 8, 2012
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
Nina Harris, Agent, Williston Park, NY
Sat Dec 8, 2012
Yes. If an investor wants to purchase your property he will also rent out your occupied unit as well.
1 vote
Sofia Palumbo, , San Francisco, CA
Sat Dec 22, 2012
Yes, all units are included for estimated rents as part of the income potential.
0 votes
Shaban Shako…, Agent, San Francisco, CA
Tue Dec 18, 2012
Yes, projected rent is often used for situations like this but the rent should be supported by local comparable units.
0 votes
Paul Hwang, Agent, San francisco, CA
Sun Dec 9, 2012
Yes you should include the owner's unit market rent.
0 votes
Oggi Kashi, Agent, San Francisco, CA
Sat Dec 8, 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.
Web Reference:  http://www.oggikashi.com
0 votes
Lance King, Agent, San Francisco, CA
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
The Medford…, Agent, Fremont, CA
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
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