top of page

Multifamily Valuation!

Multifamily represents any property that is 5 units or more. Units being the number of individual living spaces.

There is a different way to look at these properties as the value is no longer determined the same as in the residential space.

Residential property (1-4 units) values are determined by comparables (or what is known as comps.) What are things selling for in the area? What features do these properties have? Comps are the price they are currently selling for.

However, when you get into Multifamily, their values are determined by Net Operating Income (NOI) rather than comps. Each property brings with it varying amounts of income and expenses so it is unfair to use comps in this regard. No two Multifamily properties are the same!

The big question then becomes how to increase values? That part is simple. To increase value on a Multifamily property, you can either increase income or reduce expenses…when the NOI increases, the value of that property has also moved upward. When expenses drop, NOI increases. See the inverse relationship there? The higher the income, the higher the asset value.

This is why my team looks for properties that have a value add component where we can come in and make changes to then increase the value substantially. Maybe these opportunities are obvious such as pet rents or W/D hookups, but in some cases they are not. It takes putting multiple heads together, thinking creatively and working collaboratively to determine the various ways that we can increase returns for our investors.

So, if you're interested in learning more, fill out the form or book a call with me! Would love to get to know you, your investment goals and what you are looking for!


24 views0 comments

Recent Posts

See All

The Money Talk: Why Financial Literacy Matters

Hey there, fellow readers! Today, we're diving into a topic that's often pushed to the sidelines but deserves the spotlight just as much as all of the Holiday shows about to release on Netflix! Yes, y

Thanksgiving Feast?

First I'd like to start this message off with a kind thank you to all that have been reading this blog. This will be a simple, and short message. One, to wish everyone a happy thanksgiving! It is my h


bottom of page