Hi everyone. How do you value a multi family home?

Hi everyone. How do you value a multi family home?

Wholesaler · Copiague, NY · Member since 2016 · 1 post · 0 votes

This is my first multi family deal. After rehab how to establish value? I'm having a difficult time finding comps.

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  • Rental Property Investor · Cleveland, OH · Member since 2015 · 1k+ posts · 880 votes
    10y

    If there are no comps to go off of, you can always use an income basis to determine value. Determine the NOI after all expenses and reserves are accounted for (do not take into account any debt service costs) and then apply a 9% CAP. Just like the stock market trends over its lifespan at 8%, real estate CAP rates fluctuate but settle around 9%. Will this be perfect? NO, but it's a good starting point.

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