What are people doing to price multifamilies for wholesale? Is cash flow the the only method? Do comparables play much of a factor?
Thanks
On small multifamily properties you may find people using the sales comp method for valuation. Techniqually an appraisal is supposed to use all three methods and then give the most weight to the best method. I believe that for an investment property, including a SFH, income capitalization has the most weight.
Comps play a factor to form a cap rate. Comps play a factor when figuring out a vacany & credit loss rate. Also when figuring out what the operating expenses should be. Comparable property sales reflect the market, thus the market value (there are a few exceptions).