Techniques to Quickly Analyze 2-4 Units

[Ayodeji Kuponiyi]

Time is valuable. I don't have time to analyze every single multi-family properties. Its time consuming and frustrating especially when potential opportunities are lost. With that said there must be a swift way to analyze 2-4 unit multi-families. 

I know Cap Rate are only for commercial properties and larger multi-families. 

(Cap Rate = NOI / Price)

Aside from sales comps, how can I quickly analyze 2-4 unit multi-families? Please provide examples. Thank you in advance.

[Kelly N.]

Hello Ayodeji,

I created a spread sheet that I can quickly input the property stats to, then it calculates the down payment, mortgage payment, price per square foot, cap rate, etc for.  After doing this a lot, I got a good feel for how mush insurance and utilities would be on a property so I don't have to get exact numbers there before I look into the property further.

I look at Cash on Cash return/ cash flow and if a property looks good to me I will delve into the details more.

Kelly