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Updated over 5 years ago on . Most recent reply
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How to determine multi family ARV
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!
Most Popular Reply
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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.