Valuing Multifamily Properties

[Caroline Moore]

Hello, 

I'm looking for some clarification on how to best value multifamily properties (In this case a duplex). I am analyzing a deal and the COC return is decent (~9%) but not as good as what historically has been found in this market. The cost per square foot is also significantly higher than any other multifamily and SFH properties that have sold in the market in the past year. How do you know if you are overpaying for a property? I read somewhere that 2-4 units tend be be appraised on $/sqft instead of rent prices and wonder if this property would be at risk of not appraising as well. Looking forward to thoughts.