I received a call today about a property that is a duplex is a great neighborhood. 1st floor is a commercial office that is currently vacant. It previously rented for $1050/month. The second floor is a 3 bed 1 ba apartment that is currently rented for $1200. My questions is, do you comp this property like you would a SFR? Or since there is a commercial building attached, does it go by the rental and cap rate? Thanks!
There are no reliable comps for operating expenses or cap rates for these properties. Direct sales comparison is the best way to value these. Use GRM I confirm.