Multifamily Appraisals: Single vs Multiple Structures

[Michael Archard]

Hi BP,

I've been looking around for a 4 family property to FHA owner-occupy in the greater Boston, MA area. I have seen mostly 4-unit properties but occasionally come across a single property with multiple structures (i.e., 3 family and single or two 2 families on one lot).

My question is specific to the appraisal process, does anyone have any insight on the appraisal process? I know every appraiser is different but I am wondering the general approach. Are the comps of two structures, say a 3 family and single family on a single lot, based on 4 family structures in the area or are they based on the combined values of individual 3 families and single families?

Thanks,

Mike