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Updated 6 months ago,
How to wholesale rental properties?
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.