Analyzing Deals: Numbers Don't Work Yet MF Units are Selling???

[Tammy Wiggins]

I'm new and need some advice. I'm analyzing properties like crazy. I base it on always having a loan at 4% for 30 years. I'm looking in the St. Louis market near a unit I already own. I am a realtor so I am checking sales for the areas I'm analyzing. However, none of them tend to work out nor leave me with $200 cash flow per unit. I can adjust the price of the unit down, however, these units seem to be going at the list or near. I'm talking 2 unit MF's, 2 beds/1 bath, over under. Depending on location and updates they can rent from $800-$1300. The high end would be in the prime locations/streets/neighborhoods. I've also adjusted the monthly rental to get it to work. However, I'd rather error on the lower side. The majority of comps I find typically come in at 90-100% of the list price. Based on my calculations, I'm pretty positive my offers would not be accepted based on my analyses. I am utilizing the BP rental tool. I'm using all of the expense numbers I currently incur for my unit. What am I not getting? These are old buildings, there could be some high capital expenditures down the road. I also increase the tax amount since that will go up after the sale. Some of these units are being assessed at an amount less than what the original owners paid for it. Any advice, suggestions, information is greatly appreciated. I'm getting very frustrated and overwhelmed with the process. Keep in mind, at this point, I am just looking at MLS properties. I still need to work thru how to find opportunities off market.