How Does One Pull Comps For Apartments, Multiunits, and Offic Buildings?

[Martin Manning]

I'm currently moving into the commercial world of real estate. I think that this niche pays off a little better than SFH's. I can find the deals through certain websites and other resources, but i hav barely a clue on how to actually pull the comps. I mean, is it as simple as finding a few recent sales within a few miles on zillow or is it as complicated as finding a commercial RE agent who I'd have to pay to give me a CMA? Is the term CMA different for commercial? How would I find comps for other commercial properties like gas stations and hotels? Do I just have to go by the actual numbers like revenue from last owner and taxes? I just need to be pointed in the right direction because I get deals in my inbox from people I communicate with all over the country.

[Lynn Currie]

@Martin Manning 

To add onto what others have shared, in the most simplistic terms, apartment complex values are based on Net Operating Income, or NOI, and the cap rate.

Price = NOI / Cap Rate

So, if an apartment complex has an NOI of $100,000 and a market cap rate of 10%, the value is $1,000,000.

Listing agents for complexes love to price based on a pro-forma, which is utter nonsense (unless you're in Austin, in which case apartment complexes apparently have floors made of gold). Also know that you can't necessarily trust the NOI as presented, you must, must, must run the numbers.

Here's a good link to start understanding the basics:
http://www.noneman.com/pdfs/White_Paper_Cap_Rates....