Posted by Becky IL on June 25, 2001 at 13:48:25:
Eric,
You cannot compare multi-family houses with SF homes. You can compare multi-family houses with similar multi-family houses, however, the true value of the property is simply based on the cash flow potential. You must know all your expenses versus income on the property and this takes due diligence. Income, obviously, is based on the rents. Expenses would include financing costs, taxes, insurance, advertising for tenants, repairs, a mgmt co (if you use one), and then reserves for when one or more units is unoccupied.