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Updated 6 months ago,

User Stats

11
Posts
4
Votes
Jacob Lileev
  • Wholesaler
  • Pittsburgh, PA
4
Votes |
11
Posts

How to wholesale rental properties?

Jacob Lileev
  • Wholesaler
  • Pittsburgh, PA
Posted

Hey guys

!I'm curious about how you analyze and wholesale properties that make sense for rentals.
I'm calling a tired landlord list, and I've seen a few times that landlords want to sell their rental properties because they're tired.
These properties are currently being rented for a great amount with great cash flow.

Most of the time, these properties are not in the worst condition, but they are not new either (I think about $10-20K in repairs needed) or even properties that have great tenants paying great rent in them.

Now, if I analyze the MAO with the standard calculation (ARV * 0.7 - repairs - fee), it won't make sense for the seller, and he won't sell it (found out the hard way haha).

What do you guys do in that situation? Are you calculating your MAO differently?

I know sub2 might be better in those situations, but I'm focusing 100% on wholesaling and nothing more.

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