Is a group of properties is commercial or residential?
I am looking at a group of properties, but I am not certain whether they should be considered residential properties or commercial. The seller says all but one unit is on one lot, and the other property is on an adjacent lot. There are 12 units, total, and it is a mix of single-families, duplexes, and quad. Even though they are "on the same lot," each building has a separate street number. So, the seller is valuing the properties based on NOI and CAP. However, I suspect this is more of a collection of residential properties and not a true commercial property.
How do I go about determining the proper way to value this property? If it matters, this is in TN.