Not sure how to value this?

[Scott Roberts]

Hello all and thank you for taking the time. I’m new to all of this and looking for my first multi family. My dilemma is when looking at a property that is listed for say $350,000 with very little work done to it and the numbers seem to make sense for a 13% cap, but sold in the last couple of years at $70,000, am I getting scammed or did that person get a ridiculous deal?  

[Moises R Cosme]

Scott, 

1. Could have been an off market sale from family 

2. The owner could have done a lot of work inside the house; an easy way to find out is to call the town & ask what permits have been pulled and closed out in the last few years (building department will have this information)

If my post helps, would appreciate a vote.