How to calculate the value of a fourplex

[Carlos Rubio]

I am a new at this and I am going to see a fourplex that is an REO vacant and need a lot of TLC. I need to calculate the value of the fourplex. Can someone tell me which formula I need to use. Thanks in advance for your help.

[Ronald Perich]

@Josh C.is correct that fourplexes are valued based on comps because they are still considered residential properties. But I really don't consider them as residential properties for a couple of reasons.

• They don't sell as quickly as SFH. The marketability of these is mostly to investors only.
• They are income producing, so I am basing my offer strictly on how much money they can make me. 

I actually like fourplexes because you can get them using conventional financing, which is a safety net. A lender will never let you overpay for the property based on the appraisal of the property. You prevent yourself from overpaying based on the financials of the property.

As far as formulas to use, there are several resources you can use:

Start with The Ultimate Beginner's Guide to Real Estate Investing then move on to @J Scott's Introduction to Real Estate Investing. I just finished reading Frank Gallinelli's book What Every Real Estate Investor Needs to Know About Cash Flow... and can't tell you how valuable some of the info he has in there will be to me.