- Jul 26, 2007
I understand the benefits of multifamily (rarely 100% vacant, headaches under one roof, residential financing for 4 units or less). However, I am confused on how to increase their value. ...Can the value be "forced" like with 5+units? Meaning, are they valued off of a cap rate? (if I increase gross annual rents by $9k, and the cap rate is 10, then the realized gain in value is $90k.) Or is the value dependent on the market like with residential SFR?
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