Market value of an multifamily home?

[Allen Lopez]

Im curious what do you guys use to determine the market value of a multifamily home? Like for a single family property I typically use Zillow to get an idea of what the properties around that area are going for. What do you use if it’s an apartment complex or a quadplex?

[Cara Lonsdale]

The simplest answer is cap rate.  For determining if the price is comparable to the area, find out what the standard cap rate in your area is.

However, to make an offer, you need to determine what the cap rate NEEDS to be in order for you to make money on the property.

Sometimes these two are very far apart.  So, start with YOUR cap rate, and start searching for properties that come the closest to that.