I Just Found a NICE 8 PLEX, But No Comparables, WHAT TO DO???

[Edward Salazar]

I just found this very nice 8 flex that cash flows very well, the unit is vacant right now; but rentals seem to be strong on the area. I am trying to reduce my risk and speed closing, so I am placing 30-50% Down. 

The problem is the COMPS, there has not been another 8plex for sale in the area for the last 24 months, there has been many 3plex and 2plex, with similar units, (2/1, 3/1, 1/1) Should I just create a spreadsheet and compare each unit individually? Would that be something an appraiser do? I just don't want to find an unpleasant surprise later, and if i do that, what of the size of the land? What about if it was 1 story, opposed to 2 story? I just have too many doubts about it.

I would love to hear your feedback on how you would appraise this unit, what techniques would be safer to use, Thanks everyone

[David Dachtera]

@Edward Salazar,

An 8 unit is not a residential, it's commercial. It's not valued by comparable sales, it's valued by income. The question is not what has sold, the question is the income being produced by other commercial multi-family property nearby. They needn't have sold, they just need to be producing income.

Now, that's only going to tell you what the building would do fully occupied. You need to allow for it being vacant as well as any repairs / rehab it may need to get it occupied and producing income.