Determining ARV on a MF?

Real estate appraisers use two methods to determining value - per unit value and capitalization rates. First, they look at the going price per unit. This necessitates finding other MF in similar condition, quality and neighborhoods and then figuring out what was the sales price per unit. This is then applied to the subject property. For example, if you found a 12 unit MF that is similar to the property you are looking at and it sold for $216,000 then the price per unit is $18,000. The 8 unit property would be worth $144,000. This of course is a oversimplification of the process but I think you get the picture.

The second method is to capitalize the net income to determine a market value. This is based on accurate profit and loss statements. Since each market is different, I cannot tell you what your local capitalization rate is. You can check with appraisers, property managers and real estate companies that specialize in MF to find out.