Off of what our small multi family homes

[Eric Maschue]

Newbie question: I heard varying answers to this question, but what is the basis of small multi family home value. I've heard some people say that once you get into multi family rather than single-family the comps are based, not on the neighborhood or other houses around it, but on the income you can make. But I've heard other people say that four-plexs and below are basically still comped in the same way as single-family homes. What's the real answer?

[Cody L.]

Oh. If it was just based on NOI then an empty building would be worth $0 (or less). Or the NOI of a brand new class A would be worth the same as a beat down Class C with the same NOI.