Valuation of a Commercial Property in Minessota

[Erick Spades]

I am inheriting a small home 100 miles south of Minneapolis.  It's value is $160k.  It was purchased 13 years ago for $150k.

A sibling is receiving a commercial property.  It's value is UNKNOWN.  It was purchased 13 years ago for $55k.

My sibling thinks it is not fair that I am receiving more. No problem.  I want to be fair.  He says the property is worth $55k because it is in a flood zone.  The property, however, has returned $12,000 per year in income for the past ten years after my father fixed it - hundreds of hours of labor plus about $20k.  It has three or four small units, not sure.

Anyway, what is a simple evaluation for that property?  I have read about cap rate, etc.  Is 10% a good number? Or too high?  I know there are many parameters such as location, etc., but this is a very vague question.