Multi Family Property

[Tim Cooper]

I am leaning towards purchasing a 12 unit 1b/1b unit which would be my first multi-family property. I have a significant single family portfolio so I'm not new to real estate investing.

My question is: How do you value a multi-family property and/or evaluate the asking price?

More specifically the property I am looking to acquire has a very poor P&L and/or tax returns as the owner passed away and his wife neglected the property for several years which means occupancy was down. They hired a property manager who has the facility 100% occupied to date in 2020. The valuation is based off of the NOI and CAP rate which is fairly standard. The real problem for me is it is only a (1) year history....

any insight / thoughts are appreciated.