<p data-rte-preserve-empty="true" style="white-space:pre-wrap;">Key Takeaways:</p><p data-rte-preserve-empty="true" style="white-space:pre-wrap;"><strong>Vacant properties still have value</strong> – you must underwrite <em>future</em> income and back into what you can pay today; don’t let brokers sell you tomorrow’s value at today’s price.</p><p data-rte-preserve-empty="true" style="white-space:pre-wrap;"><strong>Start with market rent per square foot</strong> – use similar properties, OM data, LoopNet/Crexi, and broker conversations to estimate realistic market rent, then compute gross income and NOI (after vacancy and operating expenses).</p><p data-rte-preserve-empty="true" style="white-space:pre-wrap;"><strong>Use NOI and a market cap rate to get stabilized value</strong> – value = NOI ÷ cap rate; track offering memorandums in your market to understand realistic cap rates for different asset types and conditions.</p><p data-rte-preserve-empty="true" style="white-space:pre-wrap;"><strong>Build in margins for risk and returns</strong> – target a required equity multiple (Tyler uses 2x over 5 years) and make sure your maximum allowable offer (MAO) leaves room for both value creation and investor returns.</p><p data-rte-preserve-empty="true" style="white-space:pre-wrap;"><strong>Two main MAO approaches</strong> – (a) pay no more than ~75–80% of stabilized value <em>all-in</em>, or (b) start from stabilized value and subtract required profit, capex, TI, lease-up commissions, and carry costs to get your max purchase price.</p><p data-rte-preserve-empty="true" style="white-space:pre-wrap;"><strong>Don’t ignore non‑purchase cash costs</strong> – beyond the down payment you must plan for closing costs, tenant improvements, leasing commissions, construction/renovation, and carry costs during vacancy; these can easily push your true “all-in” basis much higher.</p>