Package deals and assigning costs
New investor from canton, oh. Been on here reading for some months.
My first deal, I’m looking at 2 duplex, 3 sfh package deal.
Does anyone know how sale prices get assigned to each property? My goal is to sell the sfh’s asap and keep the duplexes. Any help would be appreciated.
-Rob
Most Popular Reply
You can do it one of two ways (assuming the contract just has one bulk price and not broken apart by property). The 5 packages I’ve bought were this way. So my accountant used my numbers for how I was valuing them and breaking them apart for my analysis.
The other option is to used the appraised values of each property, and pro-rate those to the purchase price.