Hey guys I’m new to the real estate world but I’ve been studying wholesaling for quite some time. I want to get a general idea from someone on how to come up with my wholesale offer on a duplex or sfh rental property. I know some people use the 70% rule but I’m not sure that’ll work for rental properties. Anyone who is familiar with and has done something like this I would appreciate the help. I just would like to know what all should I take into account when trying to do these offers. Any help is appreciated thanks in advance!
Yeap for Duplexes and rentals i do it a lil different. I value it on the potential cashflow...... or you can use the CAP rate for the duplex
I feel that Cap Rate is more for 50+ unit commercial properties.
What's the performance looking like, @James Brandon? Can you provide us some numbers?
understood. Ive just seen wholesales put together a proforma with cashflow potential, CAP rate, etc when sending out deals. There maybe some guys that use it or not but they offer the data.