Your minimum numbers per door? just curious....

[William Huston]

Hello All, 

I am currently in the process of learning more about investing in multifamily properties, i currently have 5 single families, so i have no experience in them. I have been running the numbers locally on whats been on the market for sale this year and im just not seeing numbers that make sense. Currently i have been looking for a property that puts $200/door in my pocket, since that is what my single families net me currently and after running the numbers, im just not finding these prices... ive made 41 offers on multifamiles this year so far in 2018 with no luck yet, am i just asking for to unrealistic of a profit from these?

Example:

Duplex, listed recently for $249,000, 2 bed/2 bath/ 1 car garage

The property was in decent shape with 1 side already rented about $75 below market and one side vacant. The property was very clean, but extremely outdated except for the roof. The A/C on both sides were pre-2000 units, the inside had stick down vinyl square flooring, overall it was clean enough to rent out, just very dated. I figured at least a coat of paint at min to make rentable, or about 20k to bring both sides up to date partially... 

So i made an offer of $225k, because that put my cashflow at $408/month or $204/door... turned down..

So i made an offer of $230k, immediately was turned down.... property sat on market for 21 more days...

So on day 22, i made an offer of 235k, immediately was turned down... property sat on market for 4 more days before the agent called me asked me if i would go 244k, i told them i was firm at 235k, because that placed me at $140/door... next day the property went pending sale.... 

I am just a little confused how are people buying these properties and making any decent money out of the properties overpaying, i did my homework and the rent on the properties in the area was below this one already, because this was the only duplex in the area with a garage on each side, so justified it was worth a little more for the garage.....

[John L.]

I woud expect a duplex to be priced to the market and comps, not based on cash flow or income. Is this an outlier or does it match comparable properties?