I recently came across a triplex for sale in Audubon, NJ.
My team and I are not interested in actually renting out the property but are looking to wholesale to a buy-and-hold end-buyer. The property has 2 units rented out with the third needing slight repairs. We have calculated the rehab and what the units would rent for, but we are struggling to determine an accurate MAO.
We don't want to rely on cap rate seeing as the property only has 3 units, but we also cannot find any solid comps. All multifamily properties sold recently and in the area are duplexes.
I was wondering if anyone knows the value difference between duplexes and triplexes in the South Jersey market?
I appreciate any help!!!!
You can consider comps for multi sales comparing 3-unit comps versus 2-unit making adjustments as needed. Appraisers do that. Also, I know people looking in that area. If you want send me info when you are ready - I can see if they are interested. :)
Although multifamilies are in many areas throughout Gloucester & Camden Counties, there are fewer sales in each municipality, and county for that matter, in comparison to residential. The best approach for finding comparables to: 1.find 3 that bracket the subject's value contributing factors (GLA, room count, amenities, etc), 2. Start with every multi in the last year in Audubon then continuously expand the search by one mile in Camden County (and ignore other municipalities that do not have similar marketability and appeal), and 3. don't get hung up on finding the perfect match.
If you need more help with this, let me know!
Join the Largest Real Estate Investing Community
Basic membership is free, forever.