Minimum number of units to determine value using cap rate

[Brian Fiorillo]

Good Morning BP,

My agent and general contractor are walking an eight unit apartment building for me today. Initial review of the numbers looks great. My question is, at what point are you using cap rate to determine value as opposed to finding comps? I hear it said often that cap rate may not be the best metric for small multifamily. I would still consider eight units relatively small so at what point is the cut off? I assumed over four units but am looking for a bit more feedback.

All the best,

Brian Fiorillo