Appraisal Value - Multi Unit - Owner Live Free

[Christopher Goodin]

I am looking at a 3-plex property in which the current owner (elderly owner) is looking to live in the one of the units for the remainder of their life for free. I am currently working on deal structure terms, but have a question on appraised value as it relates to financing, due to the fact that 1 of the 3 units is being lived in for free.

The property is located in an area with a mix of single family and multi-family (2-4 units).

How would you expect a residential appraiser to value this property? Based on a sales comp approach of other 3-plex properties? or based on duplex properties?

If anyone has been involved with a similar deal, I would greatly appreciate any advise/feedback. 

I am looking to value this property as a duplex, given that only income from two units will be available for the foreseeable future.