Wholesaler Evaluating Duplex/Tri/Quad

[Devin Bivens]

For anyone that buys Multi family..What is the most important factor that you consider? Is it the ROI? I am asking because I am finding sellers of multi-family however, they are asking retail and in some cases above retail for the property. When I do the ROI calculation, the precentage is actually good for most, but the price seems to be high. My question is..ROI>asking price?

Also, as a wholesaler, do I add the wholesale fee into the ROI calculation? Or should the ROI be based strictly on downpayment, closing costs, rehab budget...costs..etc?

For frame of reference, I am assuming 20% downpayment, closing, costs/fees..rehab..as amount invested.

[Devin Bivens]

Thank you for the reply @Evan Polaski. I would market these properties to landlords looking to add to their rental portfolios. I assume the potential landords would get financing. So I was basing my assessment on assumed.."money out of pocket".. 20%downpayment, closing costs, wholesale fee, then doing the calculation (annual cash flow/total investment), for cash on cash% based on those numbers. Most of the properties I am coming across have renters already in them. I do have a duplex I am working on now that is vacant. It will be a total rehab for a flip investor. And thank you for the reply @Jaysen Medhurst.