New Multifamily Investor - Questions

[Sam Waddell]

I want to build a strong multifamily investment portfolio. I am based out of northeast Arkansas, but I am interested in properties throughout the state, as well as in Memphis and northern MS. I would love to network with any investors involved in those areas. My initial obstacles in my area have been the inability to acquire thorough rent rolls and the applicable cap rate for the particular market. I am analyzing properties based on the 5-step evaluation method from Ken McElroy's The ABCs of Real Estate Investing. In that book, McElroy says that a broker can provide the cap rate, which is based on comparable sales in the area. However, this has not been the case in my area. Any cap rate provided to me is simply based on the seller's estimated NOI divided by the list price. Ultimately, I want to use my calculations for the NOI and divide that number by the market cap rate to get my offer price. So my dilemma is that the 5-step method is not holding up. If anyone has any insight regarding cap rate, I would love to hear it. Another area I would like to learn more about is financing options with low, or no, down payment. I am also interested in educational training videos. Does anyone have any recommendations? I have looked into Ken McElroy's Kenflix, but I don't want to spend the money unless it is worth it. I would appreciate any insight you have to offer. Thanks.