Location matters. Properties in prime locations command higher rental income, and with that increased income comes greater property value.
A building's value is closely tied to the rental revenue it generates. Properties with stronger income streams often offer higher investment returns, making them more attractive and valuable.
A key metric for valuing a property is the Price per Square Foot ($/SqFt) and Price per Unit ($/Unit). Investors often use $/SqFt as a benchmark for comparing potential investments. Key factors also include location, size, income, GRM, and other relevant details.
Some properties may have numerous comparables, while others might have few. Since every property is unique, the prices of comparables can vary. The market is always shifting, and it's essential to factor this in when assessing property value.
Setting realistic expectations is important. Your choices are guided by factors like your budget, available properties, and building size. Gaining a clear understanding of these priorities early on helps you identify the right property that fits your needs.
The better the property's condition, the higher its price. Taking the time to clean and refresh your property before listing it will significantly boost its marketability. While some properties may be ready to sell as-is, others may benefit from targeted improvements to enhance their value.
The supply and quality of properties in the current market can impact property values. In the Bay Area, limited inventory combined with strong demand for properties has placed upward pressure on prices.