Duplex, Triplex, ETC - How to Evaluate · Commercial Real Estate 101

Scott Matthew Courtney

10h • Crunch The Numbers

Duplex, Triplex, ETC - How to Evaluate

In the paid community "Commercial Deal Academy" there was a post about duplex, triplex, etc.

How to evaluate properties such as these when they come up in your search.

From an investment perspective, I would not evaluate a duplex, triplex, or fourplex like a single-family rental.

There are really two different ways to look at these properties:

For financing and appraisal

1–4 units are residential.
Lenders often use residential loan programs.
Appraisers may rely heavily on comparable sales (especially for duplexes and fourplexes).

For investing

Treat them like small multifamily assets because their value to you comes from the income they produce, not just what similar properties sold for.

For example:

Single-family home

Purchase: $300,000
Rent: $2,000/month
You care about neighborhood appreciation, resale value, school district, and comparable sales.

Fourplex

Purchase: $600,000
Rent: $6,000/month
You care about occupancy, operating expenses, NOI, cash flow, DSCR, and return on investment.

The fact that a fourplex is legally “residential” doesn’t change how an investor should analyze it.

Scott's approach, because it's the broker in me.....

I use both methods:

Check comparable sales to avoid overpaying relative to the market.
Underwrite the income to determine whether it actually meets my investment criteria.

If the numbers don’t work, I don’t buy it—even if the price is below comparable sales.

Conversely, a property that’s priced above nearby comps might still be attractive if it has exceptional income or can be improved to increase its income.

For someone building a rental portfolio, the income analysis should drive the decision, while comparable sales serve as a reality check on the purchase price. That’s the mindset that also prepares you for larger multifamily and commercial acquisitions.

...this took forever to write...I'm done...I think the GIF is stupid funny......who is with me....made you look

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Duplex, Triplex, ETC - How to Evaluate