Cap rates - multi family residential valuation
In commercial r/e property value can be calculated as:
Value = net operating income/cap rate
Does this valuation apply to 1-4 unit properties? Or is that not considered "commercial"?
Granted from what I read institutional analysts or appraisers might start with discounted cash flows to value a property.
As you can see the waters are a little muddy. Any clarity you can provide would be great.
Thank You
Travis