We're in the process of evaluating a multifamily near where one of my sons attend college. 

Third, Even though that cant call your second building two townhomes, they can call out that you have two duplexes, which could still effect your evaluation.

I would do a cap rate evaluation and try to achieve close to a 8-cap after all expenses. 

Congrats on all the progress! 

This thinking contributed greatly to the market crashing back then and no lender in their right mind would evaluate a deal in this fashion.Lenders will always base value on the lower of the appraised value or the sales price.  

Take your time and evaluate and do a lot of due diligence. 

I am evaluating a $300K house that is about 40 years old.

We will see what the overall return looks like in 9 months when they have had a full year to go through a full evaluation of their assets valuation at least once. 

The protocol, my team tasks in situations like this would be the following: First, evaluate if the requested repair is truly cosmetic or if it impacts habitability.

We have yet to have another appraisal completed but I estimate a new evaluation of $350,000.