How to value a Duplex?

[John McCormack]

Ok, newbie question I guess...when I'm looking at a duplex vs a SFR and I'm looking to sell is my research for it's value based on it's NOI or just with what other duplex's in the area sold for? I'm thinking about making an offer on a duplex and I'm getting a bit confused. But that could be because I have to wake up in about 4hrs...

[Steve Babiak]

For lending purposes, the appraiser will use comparable sales. The appraisal will also have a section where the income approach can be used to set value, but comps are usually used for setting value for a loan.

Now, for determining value as an INVESTMENT - I suggest you want your investments to produce income, so you should be looking at income produced. Because investments might have to be sold in the future, you also want to buy for prices below the comps ...