Am I️ going crazy or what?

[Taylor Witt]

I’ve been on the search to add another multi family investment to our portfolio. For the last 6 months I’ve been searching and haven’t even been able to put an agreement together. Sure we’ve had some back and forth discussion in regards to the LOI, but that’s about it. I️ want to throw it out there and see where I️ am missing the boat or if my underwriting looks good and need to continue to be patient. During my underwriting I’m using the sellers actuals from previous years. Unless the expenses are way too low - like 25-30% expense ratio which I’ve seen, then I’ll use roughly 50%. On the income side a lot of the time they are trying to sell off the Pro Forma numbers and not actuals - I’m using their actuals, and if they are drastically under market I’ll put a slight increase on the actuals. Does this seem to be appropriate how I’m doing this? It seems that on the expense side is where my numbers become skewed from theirs. Then I’ll take what I️ believe to be the NOI based on my calculations above... NOI/Cap Rate, and I️ get my purchase price. It just seems that most of my analysis is putting my strike price usually ~25% below what is being offered. I’ve looked at roughly 500 deals and have different brokers in different markets that I’m working with. What am I️ to do or am I️ going crazy running such conservative numbers?