multi unit discount

[Joey D.]

In an apples to apples comparison, do more units per building lead to a cheaper price per unit.  So if a 4 unit was going for $300k, would a six unit with similar rents go for less than $600k.  

[Jeff B.]

I've seen offers at $X per square foot, but that's irrational to me, as is $Y per unit. The Economic Evaluation is based upon the NOI produced, so $/sqft can vary all over the place, while NOI * GRM is a good benchmark of what the price should be. I try to 'follow the money".