What Is a Multi-Family (2–4 Unit) Property?

A 2–4 unit property includes:

• Duplexes (two units)

• Triplexes (three units)

• Fourplexes (four units)

 

These properties may be:

• Owner-occupied

• Fully tenant-occupied

• Mixed-occupancy

• Long-term rental

• Short-term rental (when applicable)

 

These homes fall under residential appraisal standards, not commercial, making our residential expertise ideal for accurate valuation.

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How We Appraise 2–4 Unit Properties

Valuing multi-family properties requires a combination of residential appraisal methods and income analysis.

✔ Interior & Exterior Inspection

We evaluate:

• Condition of each accessible unit

• Kitchens, baths, living spaces, and bedrooms

• Building systems (HVAC, electrical, plumbing)

• Roof, foundation, exterior surfaces

• Shared spaces (basement, laundry, parking, yard)

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✔ Sales Comparison Approach

We compare the property to similar multi-family properties recently sold in the area.

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✔ Income Approach (When Applicable)

We may analyze:

• Rental income for each unit

• Market rent comparison

• Vacancy rates

• Expense estimates

• Gross Rent Multiplier (GRM)

• Capitalization considerations (if needed)

 

This ensures a valuation that reflects both market conditions and income performance.

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Who Needs a Multi-Family Appraisal?

Our multi-family valuations are used for:

• Mortgage lending & refinancing

• Pre-purchase analysis

• Pre-listing for investors or homeowners

• Property tax appeals

• Estate, trust & inheritance valuation

• Divorce settlements

• Investment performance review

• Portfolio valuation

• Insurance or financial planning

 

A certified appraisal provides clarity and documentation for any financial or legal decision.

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What Affects Multi-Family Property Value?

We analyze:

• Rental income and tenant lease terms

• Condition of individual units

• Property improvements

• Deferred maintenance

• Parking, garages, and site utility

• Neighborhood & school district

• Expense ratios

• Local rental demand

• Comparable local income properties

• Utility systems (separate or shared)

 

Each factor plays a critical role in determining the true value of a 2–4 unit property.