Determining ARV with Two Homes on One Lot

[Dan Hoelter]

I live and invest in greater Cleveland, OH. A lot of investment properties here will have two homes on one lot. I'm currently evaluating a triplex with a SFH both on the same parcel. The two properties have a combined square footage of over 4400 square feet. When I take comps in the area and apply the same $ per square foot to this pair of homes, I get an ARV that is much higher than i would anticipate. How would an appraiser approach this situation? Is price per square and ARV a linear relationship or does it typically taper off at a certain point?

Thanks!

Dan

[Joel Fine]

Great question. I am in a similar situation - I own a property in Cleveland with a duplex and a SFR on the same lot. I'm planning to do a cash-out refi shortly so I guess I'll have an answer pretty soon.