Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 6 years ago,

User Stats

7
Posts
0
Votes
Daniela Craig
  • Tempe, AZ
0
Votes |
7
Posts

How to Make offers on Multifamilys? Valuing 1-4 plex

Daniela Craig
  • Tempe, AZ
Posted
Hey BP fam, I’m working on get my first deal and this is what I’ve run into. Is 65% x arv - repairs, a good estimate to value a a multifamily rental property ? I got a call from a motivated seller/ seasoned landlord he has multiple properties with 100% equity. He asked for an offer right off the bat. He said go check out the property and give him a price. So i go check out the property next day . The property was a 4plex and built in the 1920s, and I didnt go inside but just from the outside it was a rough property so i gave him a range on what my offer would be depending on repairs. I estimated a full gut to be safe. I did the (65%x arv - repairs) formula and he was pissed. He said I need to learn how to value properties better or I’m not going to get a deal from anyone. So I’m just wondering if Im takIng the rIght approach on preparing my offer price. is 65% too low , am I over budgeting in repairs, or was my offer fair? I’m not flipping or wholesaling. Just trying to get a rental property using the BRRR strategy.

Loading replies...