How to find the ARV of a multifamily?

[Christian Laines]

Hi BP, I have questions that I may be thinking to hard about but just want some clarification.

1. When comparing (CMA) multifamilies, for example a duplex, do you compare them to other duplexes? OR single family homes that have the same amount of bedrooms & bathrooms one unit has?

2. In order to get the ARV, what if the only comps you find all needed work to be done and all of them were in a bad condition so they sold at a low price, then how do you figure out the ARV of your property?

[Dejan Popovic]

1. Yes, they are considered residential income properties so even a triplex and 4-plex could end up as a comp.

2.  Appraisers may and most likely will still used them or they can go out into similar neighborhood. You have to realize that those homes do make up the market.