Grafton, WI · Member since 2017 · 37 posts · 5 votes
Hello-
I'm looking wholesale a multifamily property that has tenants. How do I formulate my MOA to the seller? Is it the same as with a SFH? Please help as I want to move on this deal.
Title Representative · Irvine, CA · Member since 2017 · 874 posts · 519 votes
4y
If it's just a duplex or triplex, then try to find what other duplexes or triplexes have sold for. For example, if five duplexes have sold there in the past year or so, take the average of those and use that as your ARV. But if it's a larger complex, then buyers usually go more off of a cap rate (NOI divided by Purchase Price) which is more complicated.