Evaluating the value of a multi-family

[Ryan Van Fleet]

I've stumble across a potential multi-family deal that needs some work. I'm trying to evaluate the ARV of the property and need some guidance. The property is a lot with 6 houses on it. It has septic issues, or lack there of. I'm thinking there is a potential to fix the septic and refi the property using the BRRRR strategy. This issue is finding comps.

Is it reasonable to find houses similar to what is on the property and add their values. For example the property has the following a three bedroom two bath, 2 x two bedroom 1 baths, and 3 x 1 bedrooms 1 baths. If I found similar houses in the area is it reasonable to add those values to get an estimate of the ARV, everything else being comparable?

[Michael Seeker]

@Ryan Van Fleet - If these properties are all on one plot of land then adding up similar SFR comps would not work. If they are all on separate parcels and could be sold individually then that approach should be fine.

It might not hurt to call a local appraiser that may be familiar with the area and see how they might look at the property.  An appraiser is ultimately who will make that call for a refinance so if you're not on the same page with them it doesn't matter what you think the property is worth!