If that's the case than all those expenses are multiplied by two giving us a total expense of $22,080 (vacancy rate is taken off of the revenue side not expenses so I'll get to that.)

The wildfires from November 2016 destroyed quite a few homes in the subdivision, so that does play a part in the decision making.Generally speaking a 6.95 gross rental multiplier (800k price with $115k gross) is a little under the market average for GRM.

Most people here use GRM (Gross Rent Multiplier) to determine what type of value a multifamily is and how it compares to other similar properties, you'll probably want to start there in terms of valuation.

"Get it, Keep It, Multiply It."

It still amazes me how fast REI can multiply on itself so quickly.

Multiply the average cost/square foot by the square footage of your subject property then subtract 10-20% to be conservative. 

You can get an idea of the profits by multiplying your gross rents by about 8-10% for maintenance, then applying a 30% profit margin).

Hi @Ben Kahle - Buildings with five or more units are generally cheaper per unit and will also have higher gross rent multipliers.

@Sharon GoldBoth advice from @Joel Owens & @Michael Siekerka are excellent.Commercial building value comes from the land & the best & highest use. 1)If you can use the buildings & make the best use for yourself, then it is worth a premium to you.2) if you can tear down the building as Joel is saying & put up a national NNN tenant there, there, then it is worth a premium.3) in most other cases, it is based upon the income approach, how much rent as Michael is saying; will this place generate & multiply that by the market cap, you shall have a fair market value.4) if this location is at the dead end & needs work, stay away or offer whatever you think is worth, never mind about the asking price.

I've been able to multiply our equity to about $400k on these homes from my original down payment of just $5k!