4 unit multi family

[Zoe]

If it is your subject, you can find out how long a unit has been vacant. On your comp, if you drive by and/or see for rent on internet or somewhere? You can call and say how much are you asking for your vacant unit?

 

[Zoe]

That is significantly more successful than you...I have never observed you being in the ballpark. What happens to the value per unit as the number of units changes from 1 to 2? from 2 to 3? from 3 to 4? from 4 to 5? If you have 3 sales, how do you reliably develop an indication of the difference between those sizes?

It comes out in sales comparison approach to value. income cap approach and/or cost approach. It comes out in all three approaches to value.

If you want both 'as is" and "subject to" it gets more complicated, but not much.

I have only appraised like 7K + multi family units across several states.

 

[TerryRohrer]

It comes out in sales comparison approach to value. income cap approach and/or cost approach. It comes out in all three approaches to value.

I bet you can value apples using sales of oranges, too. Doesn't make the result credible; it just shows you can fill a page.

 

[Zoe]

That is significantly more successful than you...I have never observed you being in the ballpark. What happens to the value per unit as the number of units changes from 1 to 2? from 2 to 3? from 3 to 4? from 4 to 5? If you have 3 sales, how do you reliably develop an indication of the difference between those sizes?

If you get into multifamily, the number of units don't matter as much as the income cap approach. The difference between a 2-4 unit would be revealed in sales comparison approach if there was a difference but it would be reconciled in the other approaches to value.

 

[Zoe]

I bet you can value apples using sales of oranges, too. Doesn't make the result credible; it just shows you can fill a page.

A 2 unit would cost more to build per unit than a 4 unit with all other factors being equal. Similar to a 4,000 sq ft house vs a 1,000 sq ft house with all other factors being equal.

A 4 unit will generate more income than a 2 unit. It is not rocket science.

A 1,000 sq ft house would cost way more to build per sq ft than a 4,000 sqft house all other factors being equal. It is economies of scale. Multifamily don't necessarily work that way on sales price because it is more income focused but it still comes out in any approach you use.

 

[Zoe]

Let me digress. If i can rent a real similar 2 br, 1 bath unit in a duplex vs a 8 plex 2br 1bath unit, am I going to discount it or give it more credit based on number of units?

Number of units is just one little element of comparison.

 

[TerryRohrer]

I have only appraised like 7K + multi family units across several states.

 

[Zoe]

View attachment 107104

Go take some pepto bismol or something.

 

[Zoe]

If the appraiser jumps a long way, it may be different rental market all together and then you have to look at location adjustments, which can be done.
I would not be opposed on single family rental as rent comp similar to subject in close proximity.

If it was rented at time of sale, I would have no problem with it.

 

[Dublin ohio]

Go take some pepto bismol or something.

With some of the gibberish in this thread. I need something to keep my hair from hurting