If you want to figure out whether you're looking at a good potential value add opportunity, you need to evaluate the physical condition of the property and comparable properties.

We often see a 3 unit (1 commercial, 2 residential) selling for less than a comparable duplex and if the residential square footage is greater than 50% of the property you can still qualify for residential financing, which most people don't realize. 

When you're selling an older house that needs work you find comparable properties and price accordingly.

You can also look on the Airbnb and VRBO site and use that for comparables, the same you do comparing long term rental data.  

A couple highlights:MFHs can usually render better more cash flow since they typically cost less per unit compared to a SFH.MFHs can save you on capital expenditures since the roof, foundation, and other components are often shared.However, MFHs tend to see a higher turnover, I remember always feeling unsettled staying in a multi-family, but some people live in them for years.MFHs are often hard to value since they vary greatly in type and location.

Yes, but they are still historically low compared to years past.

If you know an area well it gives you a competitive advantage compared to others who never visited the city.

I’d recommend doing the work to see and learn about the property first then justify the offer based on the location, condition, comparable recent sales etc. so that your offer makes logical sense within the context of the market and has a chance of being accepted.

Try to ask each firm the same questions so you can compare apples-to-apples with answers.

It is really hard to compare apples to apples here because seller financing allows you to do more or less whatever terms you and the seller agree to, that could be amortizing over 30 years or it could be interest only over 3 with a balloon at the end, so you can propose different structures to get you where you need to go.