Valuing a multifamily

[Dave Page]

I have a potential deal where 2 multi family units produce enough to warrant a 600k price. @ a cap of 7.5%. I noticed that per square foot price is 241. Area homes are closer to 110. Are the investment homes valued strictly by income? Or does neighborhood pricing come into play on price.

[Ned Carey]

If your concern is getting it financed?  Just put in a contingency for an acceptable appraisal.

If your concern is whether it ia good deal put a contingency in for a due dillegence period and ask for all appropriate documents to verify income and expenses.