In appraisal, when considering valuation to multiple family properties, we will capitalize rent with a multiplier. For example, $1,200 month rent x 100 = $120,000 valuation. We derive the multiplier from the market sales where a comparable that sold for $200,000 and fetches $2,000 monthly rent would indicate $200,000 divided by $2,000 = 100 multiplier. Your multiplier may be erroneously high if your rents are low, and your multiplier may be erroneously low if your rents are high or your price is high...so it is important to 'peg the market' on rents when pricing.
Probably the best advice I can give is to consider what improvements would increase your potential rents, and also if there is any upside to your rents now. If your units are vacant, attempt to have them occupied which will appeal to an investor that is purchasing for cash flow. As well, there are buyers who want to occupy one side and rent the other (or have another family member occupy). This is especially true if your duplex is located in a predominantly single family residential neighborhood where locational appeal is stronger than in a preponderantly multiple family neighborhood. Regards, Chris@HouseNow.com
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Coldwell Banker Holman Premier Realty
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Farah de Verteuil
Real Estate Sales Specialist