How Do I Comp A 32 Unit Apartment Complex

[Carl Desert]

What information do I need to comp an apartment complex in the Houston area to make it a good deal?

[Konstantin Ginzburg]

A 32 unit apartment complex counts as a commercial property (any multiunit over 4 units is considered commercial as opposed to residential property). As a result, comps are not required to price this property and is instead priced based off of capitalization rates for commercial multifamily units in that area. Once you determine the capitalization rate of the market, you can determine the correct price of the apartment complex based off of the net revenue the property is currently generating.