How to analyze multi-family

[Nicoló Tossici]

Hello I would like to know how do you guys analyze multi-family. In particular I have a duplex that I would like to buy. The main question is do you guys go with NOI and CAP RATE in order to find the asking price or you just check comps in the area?

Thank you

[Taylor L.]

Duplexes aren't valued based on NOI, they're too small. Look at comparable sales. You're also competing with owner occupants who have more pricing options and are less price sensitive because they don't necessarily need to produce positive cash flow.