[Value add] How much discount do you demand to compensate for vacancies?
Let's say cap rates are 10 for my product type. 
I can buy $100,000 of income for $1mm, with 100% occupancy. 

Let's say we have a twin property, earning $70,000 with 70% occupancy. 

Would you set your max price to $700,000, or demand a further discount due to the risk involved with the vacancy?
[{"id": "cuwun7u", "text": "More to it than that.  What product type?  Location?  Why is it vacant?  What is needed for the value add?", "replies": [], "depth": 1}, {"id": "cuwwyeq", "text": "figure out how long you think it will take to lease it, what transaction costs will be(Brokers, ti, etc), and deduct costs.  Now add whatever you personally want to fuck with this.  \n\nIts not really complicated to figure out, but its slightly more complicated than \"well its 70% full so its worth 70% of what it be worth occupied\".  You will probably wind up actually under pricing like that.  Take it to an extreme, your way says a vacant property is worth 0", "replies": [{"id": "cuxf6ad", "text": "You've basically summed up what most people call a dark value analysis.", "replies": [], "depth": 2}], "depth": 1}, {"id": "cuwxmuu", "text": "what are the market/submarket vacancy rates for that particular product type? ", "replies": [{"id": "cuwxq2t", "text": "Around 80% occupancy. ", "replies": [{"id": "cuwxx6b", "text": "from a finance perspective, your appraised values and cash-flow models will be heavily influenced by that 20% market/submarket vacancy rate. i'd lean on that more than any individual vacancy rate for a similar property (unless its the actual subject).", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]