Seller representation · Echo Park · 90026
What is my Echo Park building worth?
I estimate your building’s value from the income it can support and the returns a purchaser requires. Send the address and unit count to start.
I price on cap rate and cash-on-cash return.
For a cash purchase, I divide stabilized annual net operating income by the required cap rate. For a financed purchase, I test annual cash flow after debt service against the cash invested. I compare the proposed returns with the 10-year Treasury, then account for operating risk, condition, tenancy, and financing.
Price per unit, price per square foot, and GRM are not my pricing basis. A building with the same unit count can support a different price because its income and costs differ.
A hypothetical example, not a market estimate.
Assume annual collected income of $180,000 and operating expenses of $80,000, excluding debt service. Net operating income is $100,000. At an assumed 5% cap rate, the implied price is $2,000,000: $100,000 ÷ 0.05.
If the same hypothetical purchase requires $800,000 in total cash and $65,000 in annual debt service, cash flow before income tax is $35,000 and cash-on-cash return is 4.375%: $35,000 ÷ $800,000. Cash invested must include down payment, closing costs, reserves, and planned work.
Every figure above is illustrative. Neither 5% nor 4.375% is a claim about Echo Park market returns. I would compare these assumptions with a dated Treasury yield and the actual loan quote before recommending a price.
Request your free building valuation.
I will follow up for the rent roll, expenses, and your sale timeline. This is a broker-supervised pricing discussion, not an appraisal.
Echo Park multifamily seller resources · Documented sales · About David Levine Bramante