@Matt Boyle no offense, but if you are an appraiser asking for tips from agents about price discovery that is sorta a red flag for me.You as an appraiser are considered to be an impartial expert on value, and agents like it or not have an inherent bias and are generally not trained, licensed or required to follow USPAP (Uniform Standards of Professional Appraisal Practice)Refer to link below for differences between USPAP and BPO.https://nationwide-appraisal.com/appraisal-avm-bpo...I am curious as to why you are asking for tips from agents doing BPO's vs seeking advice from professional appraisers in the Chicago land area?

Did your friend confirm that the zoning codes will allow him to build on farm land?

My question is what are the red flags to look for?

Make an offer on it (even if it is 40% below ask) and say you'd be interested at that price point.I would be surprised if their commercial valuation is not severely flawed if it results in a value 40% higher than a residential valuation in the same area.When somebody refers heavily to small multifamily property as "commercial" it might mean the property actually has some preferential zoning that would allow it to be used as a business instead of residential rentals.  

There are a lot potential intricacies with the township zoning and environmental issues with the stream.

In 8 years, I've replaced the D battery 2 times (every 3 years) and it lets you know weeks in advance (red light after entry) when it's going to die.

Here in Lexington School District 1, 29072, zoned for Riverbluff HS, you are going to be getting around 70-80 a square foot.

@Arlen Chou Do you know if these areas that got flooded were officially part of SC county flood zone maps?

Blake Ramseg I have definitely thought of it, but the house I'm building right now isn't zoned for multi family, (the lot is too small) I've defiantly thought about it for my first rental property.

Yet it is happening all over the metroplex. http://www.dallasnews.com/business/real-estate/2017/02/22/d-fw-home-prices-raise-red-flag-analystsPatience little cricket.