Multifamily Units.. Where to start??

Question

Hello BP family. I am new to wholesaling and I happened to reach out to a property owner and she's trying to sell an apartment type of property. My problem is trying to find comparables to see what the ARV is. The owner wants over 300k, and I don't even know if it's worth that much. I can't find anything similar to the property and I don't know if I should even move forward because the owner just renovated the units and I think it would be hard to find a buyer wanting to spend over $300k being that I'm just getting started. Also would I try to market to commercial buyers or any buyer?? Any feedback would be greatly appreciated.

Annetta Barnes · Answer

Thanks everyone!! I appreciate your responses.

Christopher Hunter · Answer

@Annetta Barnes Hello Annetta.  There are several things going on that I hear.  You do not analyze a multifamily property like you would a SFR.  You need to educate yourself to some basic information first.  Check out www.apartmentsyndicationschool.com for some free I information on how to analyze an apartment building.  Networking works well to leverage the knowledge you do not poses.  You are in a great space and getting the questions asked is half the battle.  Happy hunting.

Alina Trigub · Answer

@Annetta Barnes

Analyze the property by including all the external fees you will incur by doing OOS investing and paying others to support this place.  Then decide whether it still makes sense to move forward. If you need a calculator, use BP one.

Annetta Barnes · Answer

And the property is in Tennessee.

Annetta Barnes · Answer

No. Only 1 investor in my area and it is out of his price range. This deal is in another state. There are six 1 bedroom units.

Hadar Orkibi · Answer

@Annetta Barnes how many units is the building?

Do you have any relationships with local investors or Brokers in the market?

Bjorn Ahlblad · Answer

@Annetta Barnes welcome to BP! Need more description incl number of units and approximate location.