Do I need an appraisal?

[Robert Lindsley]

Hey there,

I'm in the process of buying a multifamily building (7-unit apartment building with an additional commercial space).  Getting the final PA has taken awhile, but I'm finally ready to move forward with inspections, appraisals, and environmental assessments.

I'm trying to figure out if it makes sense to do an appraisal.  From a financial perspective the property makes sense, but what would an appraisal tell me?  How would somebody even appraise a property like this (assuming there are few/no direct comps), would they do it based on cap rate?

I'm looking forward to hearing your thoughts on this.  If an appraisal would be useful and accurate it seems like it would make sense, but not sure that either would be true in this case.

Thanks!
Robert.