First Multi - How to know approx appraised value?

Question

Hi there everyone! This is a first post for me on BP, just one of many firsts for me in the RE world here in KC.

Anyways, I'm looking to try and buy a duplex, but as I have only bought two SFRs before (just bought the second one about a month ago), I don't really have a good feel for what a duplex might appraise for when analysing a deal and trying to make an offer. How do I know I'm not way off and not analyzing my deal correctly?

Also, any help and recommendations for private money lenders or partners for financing deals would be much appreciated! (I've already called and talked w/ most of the hard money contacts listed on BP link and couldn't get what I'm needing)

Thanks in advance!

Brandon Komp · Answer

Thanks Garrett! I wasn't sure if I should back it out using cap rates or not based on what this guy is asking. So I'll have my realtor put some comps together for me.

Garrett Diegel · Answer

Welcome to BP and the REI world. Some people may chime in with commercial info or cap rates etc but with a duplex or really anything under 5 units they are still treated as residential as far as value.......BUT.....your end buyer if/when you choose to sell will probably not look at it that way. They will probably look for cash flow or possibly cap rates but that is more rare on properties with 5 and under units. All that being said, if you are looking for a market value or ARV I'd just get your broker to put together a BPO for you with good comps etc. That should get you close to what your market can support.