Finding Deals: An AVM for Multifamily
Hello,
I'm wondering if people 1) use Automated Valuation Models (AVM) in the small-medium size mulitfamily space to spot under-valued properties by comparing the AVM price (the predicted appraisal value) to the list price (or the price you think you could reasonably buy the property at) and buying at a large difference (e.g. the Zillow Zestimate or Enodo: https://www.enodoinc.com/e-valuation.html) and 2) use any software to make a data-backed prediction of the ROI of various repairs for a BRRR approach (e.g. Enodo: https://www.enodoinc.com/market.html). Enodo predicts the amount of rent increase you could withstand for a given value-add (e.g. a dishwasher or new countertops) in all zip codes in the US.
I have not seen any mention of either approach on BP before, but potentially someone can point me to a thread discussing the usage of AVMs for finding deals in the small-medium size MF space. Thanks!