Determining market value of a multifamily property with no comps

[Derek Mortimer]

I have a 10 unit property that is a for sale by owner. I'm trying to determine the value of the property but the most recent comp was sold almost two years ago. Since then the housing market has gone up quite significantly. But I can't find any information on any apartments. So without comps, how do I determine the value of this property?

[Brian Metz]

Hi Derek, I'd call around to some brokers and ask about cap rates if there's absolutely nothing for you to base off of in the area. From there I'd use that with the seller's asking price to see what they think their NOI is. And then cross check that against the rent roll or whatever your estimates for the rent is.

It might be some work, but digging into historical caps when the owner purchased might give you an idea what the markets done, or if the owner just made a really bad choice then paying $750k.

Best of luck - sounds quite exciting with some potential!

Cheers,

Brian