When MLS Financials Make No Sense

[Amy Zemser]

I'm a SFH landlord interested in getting into a fourplex. Brandon says spend every day analyzing deals. So I do. And I am. But how do you analyze when the information multifamily MLS listings provide often makes no sense? One fourplex property owner I came across today, for example, listed his insurance at $2400/yr. Isn't that a bit much? And he didn't write down the complete rent roll. How can I work with that?

I can't go ahead and ask for schedule E before even seeing a place. But how do I get through deal analysis practice if MLS listings are incomplete or have exaggerated profits?

Also, how do I determine what my bottom line offer should be? Is it the going cap rate in my area? Is it what I can afford to borrow? Are closing costs generally 3 or 5 percent? Will there be points? It seems like I'm guessing pretty wildly in many of these practice deals, so I can never trust the output the spreadsheet provides. 

Most multifamily listings don't show interior of apartments. How am I supposed to practice estimating rehab costs if I can't take an initial internet pass at the inside? Do I just look at actual properties with my broker every day? He will slay me!  

And lastly, AUGH! 

Thanks very much, all.  

Amy