Looking to get into Multifamily Investment

[Tyler McAdams]

Hi there, we are currently doing a lot of SFR investments but want to get into the Multi-family space. I am curious the best way to analyze the properties as far as comparables and evaluating the refinancing once the property is cleaned up.

Any advice is really appreciated!

Thank you!

[Evan Polaski]

@Tyler McAdams What size multifamily are your talking about? There is a big difference between how to determine ARV for a 4 family vs, say, a 20 unit.

2-4 family, search the MLS for sales and see what renovated properties sold for. 5+ (sort of) determine the market cap rate and then build your post renovation NOI and apply the cap rate. I say sort of because a 5 unit, while commercial from a lending perspective is still more in line with sales to a 4 family and looking at price per door/comparable sales.