How do you determine value of Small multi-family Buildings

[Sean McKee]

Just out of curiosity I’m interested in learning how others values small muti-family unit buildings (3 to 4 units). I know bank appraisals use the sales comparison approach. Depending on the market I like to do a hybrid approach of the sales comparison and gross rent mutiple.

These buildings are traditionally valued by banks appraisals using the sales comparison method. However I find that sole relying on this can often give misleading information because these buildings don't sell that  frequently (at least in my market). This makes it hard to get enough recent comparables.

Thoughts?