Efficiency/Long-Term Apartment Building

[Todd C.]

Hey all!

Found an off-market deal in a market I'm beginning to dig into. My realtor and I checked out the building yesterday and we were extremely impressed with 1) lack of tenant turnover and 2) the quality of the building itself. The only ? I have with this is that 6 of the 8 units are referred to as efficiency units, which are effectively studios with shared bathrooms. Now the cash flow here speaks for itself, and the fact that tenant turnover has been pretty low despite efficiencies attracting transient tenants is a big positive. 

That being said, and as the landlord is motivated, I'm trying to figure out what the best way to get the true "value" of the building. Is comps the best way to look at this still or is there another method that I should be taking into account here?

Thanks!