Estimating After Repair Value of Multi-family properties

[Andrew Zbrzezny]

Does anyone have any tips on estimating after repair value (ARV) of a multi-family property. I am in the process of closing on a two unit property outside of Buffalo, NY and am deciding whether to use a mortgage or pay cash and BRRRR it. I have looked on Zillow and Realtor.com for comparable properties and what they have sold/ are selling for in the area in terms of square footage and bedrooms. Any other advice would be appreciated!

[Matthew Irish-Jones]

@Andrew Zbrzezny depending on which lender you go with your ARV is going to be based on a combination of market comps, and income or one or the other.

I have seen some banks just do an income based evaluation and some just do market comps. The best thing to do is just as you mentioned, get a good idea of what the market comps are for similar sold properties. Do a sq ft breakdown of the area to give yourself a general idea of what the average rehab sells for. Lastly, do an income based appraisal with a 10% CAP.