Evaluating investment property (duplex)

1 Reply

Hi everyone,

I'm sure this has been asked and answered before, so please pardon me if this is the case.

I'm looking to see what people are doing currently to evaluate multi-family investment property opportunities.

I just looked at recent sale comps in the neighborhood for similar duplexes and they lead me to believe this is a good opportunity.

What should I do next? Do a gross rent multiplier exercise/comparison?

Love to know what this forum thinks.

Thanks

@Mike Estes welcome to BP! Listings are often misleading or wrong. The numbers from the seller or agent are incomplete or old. Rents assume 100% occupancy, taxes are calculated on existing values which will increase, water and sewer is usually omitted, allowances for vacancy, capex, and maintenance, are actuals, non payment of rent is omitted.

The BP calculator and the 1% rule will be helpful. Attend some of Brandon Turner's podcasts and leard to underwrite to get started. All the best!