Lumping a duplex on a commercial appraisal

[Pat Jackson]

I’m looking at two vacant apartments. One is set up as a duplex, the other a 6 plex. They’re right next to one another, and currently for sale by the same owner.

The 6 plex should stay a 6 plex, and obviously would be valued on a cap rate and performance. I may be able to turn the duplex into a 4 plex, but I don’t think adding an additional unit is a great idea.

Local bankers I’ve spoke with and materials I’ve read state 5+ units valuations are based on cap rates, 4 units and less valuations are based on comps.

Is there any way to have a duplex and a 6 plex sitting side by side to be valued as an 8 plex?