How to determine apartment values

[Mike Crouse]

I feel like I can accurately evaluate BRRRR or flip projects. How do you accurately value an apartment complex. I'm looking at a 34 unit in OKC with a cap rate of 8%. asking price is 1.8,000,000. Evenly split between 2/1 & 1/1 units with only a single 3 bed. I'm not actually going to buy this, I just have no idea to even determine if it constitutes any kind of a good deal. Can't ever buy an apartment if I don't know what I'm doing. Thanks in advance.

[Charles Carillo]

@Mike Crouse

With commercial multifamily (5+ units) value is determined by the NOI. Yes, when you look in a broker's packet they will have comps of other complexes that have sold; but really you are determining the value by the NOI and cap rate. If you are planning on doing a value-add business plan, you will need to start comparing the rent comps of similar units nearby as well.