All Forum Posts by: Ryan Swan

Thanks, Jon. The CAP (calculated by me) is solid at around 9.3% with very low vacancy due to proximity to a university. The per unit price concerned me because it's about 10-15k higher than other complexes nearby. However, this property is on a highly desirable historic street that is closer to the university, with naturally higher prices for all property types. I was trying to better understand how per unit price is calculated to see if it is justified in this case.

I am analyzing a potential multifamily property that has a mix of dissimilar unit types (a combination of 1 and 2 bedrooms). It's easy to compare the per unit price of two properties that all have the same unit type (all 1 bedrooms or studios etc), but how do you make the analysis when two properties don't share all the same unit types? Comparing a 2 bedroom "unit" to a 1 bedroom "unit" seems like an apples to oranges comparison. Is it practical to compare cost per "bedroom", or is that not a common metric?