Posted by Jim Holmes on February 07, 2000 at 24:09:52:
Sally,
I have a couple of duplexes and cap rate formulas don’t work well with them because they are so small in units, they vary vastly from multi-units in their emotional appeal, and location and lay-outs are different.
Figure your vacancy factor and NOI. You want them to cashflow well. I will pay more for a duplex that have the utilities divided and paid for by the tenants. Side by side units are better than converted units to me because side by side units were built to be duplexes with less hidden problems.
I do look at the comps, but cashflow is the main factor. You are investing to make money.
Good Luck!
-Jim from Idaho