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Updated over 5 years ago on . Most recent reply

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Amanda Scully
  • Bloomfield, NJ
8
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How to determine multi family ARV

Amanda Scully
  • Bloomfield, NJ
Posted

Hi! 

Just want to get some clarification on determining ARV for multi family homes...if I'm understanding correctly, they're valued based off of their NOI, and not nearby comps, correct? So how do I determine the potential ARV for a multi family property when analyzing a deal?

Thanks!

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Brian Garrett
  • Real Estate Investor
  • Palm Beach County, FL
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Brian Garrett
  • Real Estate Investor
  • Palm Beach County, FL
Replied

Anything 2-4 units is considered residential and valued based on comps just like single family.

Once you get to 5+ units it becomes commercial and it's value is determined by the NOI and market cap.

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