fair market value estimatation
Hi All,
just got put onto this site by an investing colleague of mine - what a phenomenal resource.
I am looking at a 4-plex, it'll be my second rental purchase, already have one established, albeit SFR.
When I look at comps the nearest 4 plex units are all 2 bed 1 bath, and one sold as recently as Dec 2014, so is a good guide for me.
What is a good strategy to estimate value in the 4 plex of interest to me which is 3/2 as it's the only 3/2 layout compared to the other 2/1's.
I have averaged number of rooms and applied this to larger 4 plex, eg sold for value divided by 8 (2bedx4 units), divided by 12 (2 bed, 1 bathx4) , then multiplied this by 12 (3bedx4) and 20(3bed, 2 bathx4) and I have also used square footage ratio's to gain a value on the larger property.
Are any of these methods feasible and if there's a better method, I'd love to hear it.
For the record, these comparative units are all in the same subdivision, are architecturally similar, so direct comparisons in this case are pretty close.
Thanks in advance,
Michael.