Multi family with poor records

[Joseph Davis]

I’ve located the perfect add value potential multi family (6) units off market. The problem is the seller has poor financial records. Not enough data to value the property appropriately. How should I proceed ? It’s through a wholesaler I might add

[Heath Ryans]

@Joseph Davis the same way you would value it if he had excellent records. Throw them in the trash and analyze the deal based on how you can operate it. 

Calculate his Gross Potential Income (12 months of rental income if all units are rented), minus (your numbers) Vacancy, Loss to Lease, Operating Expenses, and CapEx reserves. That gives you your NOI then divide that by market cap rate. That's the valuation as is.