There are numerous television shows about flipping houses, yet not much information about flipping commercial property. Business or commercial property can be great turn around investments also. These properties often need less rehabilitation and remodeling. Most of the work is in finding them and analyzing their potential. When you do find property that is priced right and has room to raise rents or decrease vacancy due to some cosmetic or easy rehab there is a formula to determine how much value you can add to a commercial property by increasing the rental income. This is a multiplier effect of the capitalization rate for income. The cap rate is total net operating income divided by the sales price shown as a percentage. Increase in Income / CAP Rate = Increase in Value. Basically when you add as little as $100/month to monthly net income the property value increases by $20,000. ( 6% CAP Rate.) $1200/year / 6% CAP Rate 0.06 = $20,000 additional value.