Are my numbers way off???

Question

So I've been in the market since November trying to buy a multi family property (duplexes/triplexes). I'm typically offering around 70% of asking price in order to make workable numbers. I've been using the Bigger Pockets calculator religious to tally up what is the highest I'm willing to pay. I've noticed that the multi family properties I offer on are getting asking price and more and I can't figure out how people are making the numbers?! How are people paying so much and expecting to profit? I know that some of the buyers are just people who are not investors, but some are investors. I'm wondering what I'm missing, maybe I'm making a mistake with the numbers. I want to get my foot in the real estate investment door so bad. I'm just flabbergasted how fast even multi family properties are going and for more than asking price.

Multi families that sold for $120k 15 years ago are selling for $270k today. I am so 15 years too late!

Multi families that sold for $120k 15 years ago are selling for $270k today.  I am so 15 years too late!

Anton Ivanov · Answer

@Janis A.

I would double check that you're not underestimating the market rent on these properties. But it could be that other investors are willing to accept much lower returns than you in that market.

Brie Schmidt · Answer

@Janis A. - Then you need to adjust your expectations or change markets.

Markets produce a certain ROI.  If that is below what you will expect you need to find a market that meets your criteria