Are small multi family (2-4 units) based on comps or cash flow?

[Marc DuLaney]

Hello fellow Bigger Pocket members. I am curious as to what my offer should be based on when it comes to small multi-family (2-4 units) properties. Should my offer be based more on comps in the area and  previous sales, or should my offer be based more on the rental income the property is producing or a combination of both? In my mind, I would figure the rental income the property is producing would have more weight with coming up with an offer but my realtor states it's more based on previous sales and comps. Can someone bring more clarity to this topic? Thanks a bunch :) 

[Thomas S.]

Buyers offer should always be based on rental income. SFH, small multi, commercial it doesn't matter to a buyer. Asking price should be irrelevant to a investor. This is why we suggest a 1% - 2% rent to price guide line. If the market is being unrealistic you look elsewhere, don't make offers.

Realters may set price by comps, investors determine offer based on income.