I will be getting an multi family unit under contract in two weeks my first. What I'm understanding it's the same process as single family home wholesaling. I don't want to generate any income or hold the property I just want to move it and get my fee. Can anyone give me any pointers or insight when wholesaling multi family properties
I was wondering the same question. I know that the main concern is going to be cashflow,cap rate. The cash buyer is going to want a discount. My question is if the 70 percent rule works in your area, should that still be the rule. If not what kind of discount would a cash buyer want for small multi family houses 1-4. I live in Rhode Island. In the Providence county area. In there seem to be nothing but these units here. Whats a good cap rate for a cash purchase small mulit family. Im interested in any responses from the community.
I can't speak for your specific area as cap rates are location specific. But if you were in my area, I would buy at 9+ cap, assuming only minimal cosmetic repairs (rent ready), and it is not in in a bad area.
So you would figure out ARV based on your area's cap rate, then subtract repair estimates, to get the maximum your investor would pay.
This may be the best pointer I can give you. Call me. I buy them and I buy a lot of them. No problem if you make money on the spread. That's the name of the game.