How long does it typically take to sell a multi unit property?

[Joshua Toste]

In said example, if you're able to purchase a quadplex in upstate New York, that was under valued and under preforming; Then proceeded to substantially increase its ARV along with its monthly revenue. How long on average do you guys think such a property would remain on the market before being purchased by an investor?

Imaginary Property Details 

Property Value ($600,000)

Monthly Revenue ($5000)

[Ronald Starusnak]

Mark is absolutely correct, the local buyers are not going to buy based on cap rate. You may be able to sell to an OOS investor for cap rate. It doesn't mean it isn't worth as much, it just means the volume of cheap properties available to local investors is too high for them to buy at cap rate. Mark is also right that $5k gross revenue, is bad. I think you mean a $60k NOI and then you're going to sell at a 10 cap for $600k? This isn't the market for that kind of sale unless you have a list of turn key buyers.

Look at these numbers

• 4 Units Renting $1,250/Each
• Gross Annual Income $60,000.00
• $480k Mortgage.
• $120k Down Payment.
• 20 Year Commercial Loan at 6%.
• $5,000 in annual taxes.
• $2,200 in annual insurance..
• $4,038.86 / month for mortgage, tax, insurance.
• $6,000 / annual maintenance fees.
• $4,800 / Property Management Fees

Net Operating Income: $ 733.68

Cash on Cash Return: 0.006% (Terrible)