Valuating a Single Lot With 2 Buildings

[Richard Arden]

I am looking at a property tomorrow with a motivated seller and I am absolutely stumped on how to valuate this property.

There are 2 houses on a small lot.

A 3bd/1ba SFR and a dulpex 1br/1ba and 2br/1ba.

There are plenty of good comps for the duplex and SFR individually but nothing that would suggest a valuation of both together.

How would you valuate this? As a triplex? Based on a cap rate? Or would you treat them as separate assets and subtract a little?

[Todd Rasmussen]

@Richard Arden

I'd value them individually, as a triplex, and based on income to know the numbers, then I'd make the lowest offer I could scientifically support and start there.