How do you value small MF?

[Matthew Ries]

I have a question for everyone.  How do you value small MF properties (1-4 units)?

When I look at these properties (the true duplexes, triplexes, and quadplexes - not a SFR that has been converted into a MF) I notice they get listed on the MLS or LoopNet (yes, I know - not the best place to find these deals) with prices more reflective of the local residential real estate prices (comparable prices per sq ft). It can be difficult to make the numbers work when these MFs are priced based on a high $/sqft.

If you are evaluating a property, like a quadplex, are you looking more at the area's cap rate to figure it's worth? I would think I should evaluate any MF (2+ units to 100+ units) the same - based on financials, and local cap rate and cash flow, etc. because they are one dimensional - they will always be a MF unit (compared to a SFR that could be a rental, sold to a family, converted into a MF property, used as an AirBnB type rental, etc).

I hope my question makes sense, and I appreciate any and all input.

Thanks