Acceptible Comp Criteria for Quad

5 Replies

Hi all. I am working up an arv for a client who has a quad under contract. The quad sold comps are not in repaired condition, but some nearby triplexes and duplexes are. Would it be acceptable to use the per square foot sold price of those to estimate arv for quad? Balanced for build quality, location, etc. of course. This is going to a hard money lender.

Hello @Robin Williams
I would use the quadruplex comps and adjust for condition. The condition adjustment can be derived (as a %) from repaired vs un-repaired duplexes and triplexes.
Best wishes.

@Angelo C. thanks for the feedback. I believe that is a reasonable strategy.

@Robin Williams

Yes I would look at similar quads in the area... comps for multis are tough to find at times! 

@Robin Williams Comps for quads (and smaller MF properties) are hard, if not impossible to find. Unfortunately, in Texas we don't have the same type of small MF housing stock t hat markets like NYC, Chicago or Milwaukee possess. 

@Angelo C. has a good suggestion but my only concern is that when you adjust for repaired vs. un-repaired you will be making assumptions which will not be backed by hard comps (because your data set is too small or non-existent). Nonetheless, you don't have much options. 

Although, this isn't usually applied for quads, you can also look at rental income as a proxy for the condition of a property to adjust your valuation.

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