Thought this was an interesting story...
[{"id": "db017v5", "text": "The article highlights that commercial property valuations are based less on comparables and more on the value of the cash flow that can be generated. What increased the value of the building in the case was the rents being raised and operating expenses being decreased.", "replies": [{"id": "db01exh", "text": "So CRE 101?", "replies": [{"id": "db01ikk", "text": "It didn't seem like an overly complex model to me, but I suppose it's the execution rather than the modelling that will determine whether it works out or not. ", "replies": [{"id": "db3n14d", "text": "the thing the article leaves out is - how do you raise the rates 10% and keep tenants / occupancy? You either need a super-tight market, or you have to put some capital in the property to keep tenants around.   \n\n&gt; Maybe this article will inspire you to do the same. What do you think: Is commercial real estate the best way to achieve financial freedom?  \n\nSo if you have $350,000 liquid and a deep understanding of the risks, then yes this is a great way to achieve financial freedom. ", "replies": [], "depth": 4}, {"id": "db3umgu", "text": "5+ unit apartment buildings are generally valued on a capped NOI value because it is more indicative of its true value.  Less than 5 units you are usually just looking at neighborhood comparable single family home prices.  ", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "db03ij8", "text": "Yeah, this is my bread &amp; butter. \n\nI like places that need a little bit of updating/deferred maintenance to jump up a tier.  There is big money in taking a C property to a B+. Part of it is the property, but even more is the process/tenants.  ", "replies": [{"id": "db0fnza", "text": "What's your turn around time like?", "replies": [{"id": "db0sftd", "text": "After 18-24 months the property is stabilized &amp; can sell or refi at the higher valuation. ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]