Multifamily Market value

[Mendy Blasberg]

Hey guys,

I'm a newbie to real estate investing and after doing a few months of research I feel that multifamily homes are the place I'd like to start investing. 

I have a few deals in Cincinnati that I'm looking at right now and I was given the numbers for the deals (sale price, rent, expenses...). I'm trying to determine whats the market value for multifamily homes in the area so I know that I'm making the right offer on the property. And also figure out what I can expect to get in rent for each of the units.

Any suggestions on where I can look to find comps for multifamily market value as well as where I can look to find what rent the units can bring in?

I would love to hear your feedback
Thank you in advance!

[Evan Polaski]

@Mendy Blasberg greetings from another Cincinnati investor.

What size properties are you looking at?  

For market prices, 2-4 unit properties are primarily listed on the MLS, so you can search that, or realtors have better comp tracking you can utilize if working with a realtor.

As for rents, look around on Zillow, Craigslist, MLS. You will find a lot there. APartments.com is typically used for larger properties, but you can occasionally find small properties listed there too.

As for expenses, when you find a property you like, ask the listing agent for a detailed P&L and rent roll.  

Just a heads up, this is definitely a seller's market, and these smaller (2-4 unit) properties are not valued the same way 50+ unit complexes are.  I find many people buying these properties are not accounting for the market standard 10% management fee, may not be accounting for the new RET amount that will hit very quickly after sale, or seemingly any reserves.