Best way to determine Duplex/Quad valuation.

[David Renner]

Hello,

First time poster and fairly new to real estate investing. My Co-Owner just finalized our LLC and have started looking at properties for potential buying opportunities. We do have a meeting with a local broker/real estate agent next week but thought it would be best to jump on line and take a look at some local properties and if nothing else practice our valuation process. So far with the properties that have looked promising we have utilized the calculated NOI / Cap rate to determine the value and every one we have done has come up way lower than the asking price and in one instance came up less that what the current owner paid for the place initially. All of the properties that we have looked at have been a quadplex or smaller.

In my research I have seen that some investors choose not to utilize cap rate when determining the value of a property that has less than 4 doors. So, I was wondering if you all would be so kind as to share some of the processes you like to utilize when trying to determine the value of a property that is 4 doors or less. Thank you all very much in advance!