Portfolio of duplexes - Commercial or Residential Valuation?
Hello all,
This past year I purchased a duplex to house hack using a VA loan. My plan was to stay in it a year and then buy another duplex using a second VA loan or FHA and rent the first one out completely. Then continue buying a new property once a year as long as I could save for a down payment and qualify for more loans.
Recently, I've been drawn to commercial multifamily real estate (many reasons) in lieu of small residential multifamily. So, I'm looking for a solid exit strategy and was wondering if the following would work:
Continue purchasing duplexes until I have at least three (6 units total) and then market the three (or more) properties as one commercial package. The reason for doing this would be to value the properties as one commercial package using NOI and cap rate versus valuing each individual property based on comps. From running the numbers on my current property I believe the value of my duplex would be worth a whole lot more if it was valued using NOI instead of comps.
Has anyone ever used this strategy and has it worked? I still have yet to purchase my second property but I wanted to go into it with a solid exit strategy. Any other thoughts or advice?
Thanks in advance!