Can Someone Help Me Comp My Triplex?

Question

I own a triplex in Columbus, OH that I am thinking about selling, but am having trouble finding comparable sales when I look on zillow,redfin and realtor.com. Each unit is rented until Aug 2024 at $1300/month and I do not know if I am supposed to put the address in here or not, but if someone can help please send me a message and I'll give the address then.

Appreciate any help!

Scott Allen · Answer

@Zac Lindquist

I work primarily multi-family deals in Columbus. I can help you comp it

Account Closed · Answer

Hey Zac, I'd be happy to discuss this with you further, but from a glance- very strong rents (granted i don't know the bed/bath breakdown, square footage, etc. of the units) and the supply is very limited for multifamilies on the MLS here in Columbus, and the good deals come and go like the wind. A lot of investors I come across look at the 1% rental income rule, so $3900 a month means you could get around $390,000 (again this could vary a LOT based on conditions and neighborhood).

Edward Dean · Answer

Start talking to real estate agents in your area. Interview several. They should be able to tell you what the cap rate is people are using in your area to value multi-unit properties. What makes it a "good deal" will vary quite a bit from region to region and may swing quite a bit even within your town/metro area. From other posters above it sounds like a gross cap rate of about 12% is normal in your area, ie, the 1% rule, but confirm that with agents in your area that sell a lot of multi-family properties where you are. Also talk to them about ways you could potentially boost your valuation such as cosmetic fixes with good ROI. Interviewing agents is free and it could be well worth the commission to hire one if they can show you how they will net you more than trying to go it alone.

Tim J. · Answer

In most cases the interested parties will be investors...  I would price it based on financials.

Consider Rents, expenses, etc.

A window for pricing would be something that could "break even" if someone put 20% down and was paying market rate for 30 year mortgage.

That would get you a rough number but puts you in the range where people would be able to buy it.  Any less than that and you are leaving money on the table, any more than that and your biggest set of potential buyers will walk away.

Jimmy Lieu · Answer

Hey Zac, I would love to know more about the property and tell you how I can help. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!

Zac Lindquist · Answer

Sell if the right comps come back.

Greg Scott · Answer

An ongoing problem with duplexes, tris and quads is that if you buy in an area where there are not a lot of them, getting comps can be difficult.  This can make it challenging to sell and even harder to refinance.

If you are looking to sell, you might be able to find someone more interested in the returns than down payment and get a good price.

Are you looking to sell or refi?

Can Someone Help Me Comp My Triplex?

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