Having a background as a commercial real estate broker, I have in-depth knowledge of what market rents are per square foot.
This “back of napkin” formula can be any single metric that works for you and can give you a quick green or red light. For me, I like to look at the asking price per square foot of the investments I make. Having a background as a commercial real estate broker, I have in-depth knowledge of what market rents are per square foot. By utilizing the prices per square foot on the purchase and rent, I can quickly determine if the deal will make any money.