Estimating ARV for multi family

[Kyle Fricke]

Hi All,

I'm wondering if anyone has experience with estimating ARV for multi family properties. The issue with using MLS comps is there are very few recent comps, so it's difficult to assume what value an appraiser would assign when I go to refi after rehabbing.

I'm currently considering a duplex BRRRR but I'm also interested in a 4 plex for sale. I've called some appraisers but they would only offer full blown appraisals. If anyone is willing to share tips on how you've projected the ARV on multi family properties, I'd greatly appreciate it!

[Aaron W.]

Originally posted by @Kyle Fricke:

@AJ H. Thanks for the reply. Good to know on the 5+ unit properties. For the duplex & 4 plex I've had an agent pull a CMA report (competitive market analysis) but the "comps" are not really similar and have a big variance in sales prices. I will keep doing research tho.

Does the CMA include properties that have similar bed/baths, layout, year built, etc.?

At a certain point, you may need to make educated guesses at what the potential ARV is based upon the CMA and what similar properties are valued at.

Best of luck!