Help! How do I properly determine the value of this property?

Help! How do I properly determine the value of this property?

Rental Property Investor · Lynchburg, VA · Member since 2018 · 4 posts · 0 votes

Hi guys,

I have a question about the value of a property. I understand that large multi-family properties (5+ units) are appraised differently from small multi-family. What about three duplexes (6 units) in the same street but not side to side? Will they be appraised based on income producing or comps? They will be financed on the same loan.

Thank you!

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y

I agree with @Joe Villeneuve. If they are separate pieces of land then they will be assessed individually as duplexes. If they are all on the same piece of land, then it would be considered a commercial property with more than four units.

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  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    7y

    Those are three different properties, 3 different deals.

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    7y

    I agree with @Joe Villeneuve. If they are separate pieces of land then they will be assessed individually as duplexes. If they are all on the same piece of land, then it would be considered a commercial property with more than four units.

    The DIY Landlord Book4.7248 Reviews
  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    7y

    They're three different lots and not commercial properties, so they would be valued based on comps, not NOI/Cap rates.

  • Rental Property Investor · Lynchburg, VA · Member since 2018 · 4 posts · 0 votes
    7y

    Understood! I really appreciate you guys, this helped a lot!

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