Quadplex Comps for ARV and Price - South Carolina

Multi-Family and Apartment Investing
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Quadplex Comps for ARV and Price - South Carolina

Junior Salters
Rental Property Investor · Spartanburg, SC · Member since 2013 · 253 posts · 56 votes

Hey guys,

I know quadplexes are not technically considered commercial properties and so their value is computed off of comparable sales within the given area. What do you do when there have not been many if any quadplexes sold within the given 6 months to a year or longer? I'm currently working off of the numbers I need to make a deal considering market rents, but I understand these deals aren't technically viewed that way. Any suggestions or help would be great!

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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
9y

Set minimum cash flow goals for investment with a property. Make sure in the contract you have an appraisal contingency where you can terminate if property does not appraise or the seller has to lower the price. You do not want to have to bring additional down payment money to get a loan to close or risk losing your earnest money etc.

Have there been duplexes or triplexes more recently sold as comps? Have you checked not only MLS but tax records for private sales?

Also some appraisers and brokers/agents do BPO's on properties which is an opinion of value for a nominal price ( Usually a 100 or below for average).

If not many sales are available be conservative in value. Seller might be more optimistic but buyers with limited market data need to be more cautious.

Even without recent sales you can look at rent growth for an area for trends and vacancy rates.  

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    9y

    Set minimum cash flow goals for investment with a property. Make sure in the contract you have an appraisal contingency where you can terminate if property does not appraise or the seller has to lower the price. You do not want to have to bring additional down payment money to get a loan to close or risk losing your earnest money etc.

    Have there been duplexes or triplexes more recently sold as comps? Have you checked not only MLS but tax records for private sales?

    Also some appraisers and brokers/agents do BPO's on properties which is an opinion of value for a nominal price ( Usually a 100 or below for average).

    If not many sales are available be conservative in value. Seller might be more optimistic but buyers with limited market data need to be more cautious.

    Even without recent sales you can look at rent growth for an area for trends and vacancy rates.  

    Podcast Guest on Show #47
    NNN Invest53 Reviews
    WebsiteView Page
    3Reply
  • Junior Salters
    OP
    Rental Property Investor · Spartanburg, SC · Member since 2013 · 253 posts · 56 votes
    9y

    Thanks for all the tips, @Joel Owens! Quick question, how would I go about checking tax records specifically for quadplexes?

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    9y

    Call the tax assessor for the county or city you are buying in and ask for the chief appraiser. Sometimes they have a list coded by property type. 

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  • Richard Sanderson
    Appraiser · Portland, OR · Member since 2012 · 44 posts · 13 votes
    9y

    Local assessors are a valuable resource that is overlooked by many real estate investors. Perhaps it goes back to the old school belief that the assessor was the bad guy and going to find out too much. Well, today the local assessor is the least of your worries and big data has been here in the form of real estate information for a long time. The local assessor makes it his or her job to know about ALL valid sales of real estate. Meaning sales that don't always involve brokers and MLS, and know of land contracts, etc. They will also share what trends they see in the local real estate market. Most assessors work at valuing real estate for eight hours or more each day, all year. Sound like someone you should know?

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  • Junior Salters
    OP
    Rental Property Investor · Spartanburg, SC · Member since 2013 · 253 posts · 56 votes
    9y

    @Richard Sanderson Great insight, Richard. I will definitely reach out to the local tax assessor in my market. Those are all great points!

    @Joel Owens Thanks!

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