The total cost of acquiring a multi-family property divided by the number of rental units.
Cost per unit is a quick way to compare the value of multi-family properties. It divides the total purchase price (or replacement cost) by the number of rentable units, giving a per-door comparison. It's especially useful when comparing properties of different sizes or in different markets.
Cost Per Unit = Total Purchase Price ÷ Number of UnitsCost per unit equals the total acquisition cost divided by the number of rental units in the building.
A 12-unit apartment building sells for $1,800,000. Cost per unit = $1,800,000 ÷ 12 = $150,000 per unit. Comparing to a similar 8-unit building selling for $1,000,000 ($125,000 per unit), the second deal is cheaper on a per-door basis.
Richify automatically calculates cost per unit and other key real estate metrics for every property in your portfolio. Instead of plugging numbers into spreadsheets, you get instant analysis with built-in AI-powered insights to help you spot trends and opportunities across your holdings.
The process of determining a property's market value using one or more standardized methods.
Recent sales of similar properties used to estimate a target property's market value.
A property's annual net operating income as a percentage of its purchase price.
The ratio of property price to annual gross rental income.
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