what is this property worth?

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Posted by Garrett-BC on May 15, 2009 at 15:25:17:

Hey everybody,
I am looking at purchasing a commercial property but am having a problem coming up with a value... any help is greatly appreciated

Total monthly income = $5000 ($60,000/yr)
4 buildings with long term leases on 0.63 acres highway frontage. zoned local commercial and highway commercial

asking price $600,000

Im having a problem coming up with a value of this place because;
- there arent any comparable properties I can relate this too.
-Government assessment is only $377,400
-3 buildings are in relatively good shape, but the 4th is a mobile atco type building that will depreciate in value fairly quick. (generates $1500/month revenue)

Should I be paying more attention to actual property value, or should I go more with what the cashflow generates

thanks in advance for your help

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