Analyzing Rental Properties

[Oscar Almonte]

Newbie here...been swimming through some info. I am trying to find my answer by changing my question through the search tap but I still have not been able to. Hang on...lets see if I make sense. 

I have been looking at some properties from the MLS. Just using the calculators to make some sense of it all. Some of these properties are coming up with insane numbers based on the asking price and the rent. I do not see how they will ever sell. When I fill all the fields...some properties I am getting - 20% coc and - $2,156 cash flow...LOL. I am looking at some 4plex. My understanding is that we evaluate properties like what we do for SFH. A 4plex for a 4plex similar in beds, bath and sqft and not the income approach. Is that correct?

The problem I have is that these 4plex are jumping around by the 100's of thousand and the rents are all over the place. I seem to have an easier time applying the income approach. Also some of the rents for these properties are 5 to 9 hundred under market. It looks to me people have not been raising rent for years or they do not know what the market is. I am not should which one is it. When I lower the asking price and plug in market rents it makes more sense to me but again that is using the income approach.

My goodness as you can see I am all over the place and need some guidance. My plan is to house hack a 4plex. I also would like to wholesale some of these multifamily to raise cash to build my portfolio of multifamilies. I got Brandon's The Multifamily Millionaire book...both of them and reading it now...half way through one. I believe the second one is focused for 5 units and more. Hopefully it gets clearer when I finish it, but right now it has not given me how I should look at 4 units and less. It still looks to me like the income approach so far.

1. How do I evaluate duplex to 4plex if the income approach is not the correct approach?

2. How do I determine an ARV when most 4plex are not renovated or are not similar?

Thank you for your patience...I hope I made sense.