Strategy..Wholesaling a Multi Unit Rental Property
Hello all,
Its been a while for me...I'm glad to be back around here learning as much as possible!
I was hoping to get some advice on a wholesale deal I've been working on.
I found a 3 unit rental property and the owner is willing to sell it for what I think is a good deal so far. The 3 SFR units on 1 property are completely paid off and gross $1100/month. The landlord says he can get more. The tax value is 178K and he is willing to sell for 75-90K. The comps in the area...according to zillow show a comparable house sold recently for 59K. That was 1 house as opposed to 3 on a lot 1/3rd the size of this one. There are also homes in the area sold for ove 200K recently so its a decent area. The lot is zoned so that 10 units are possible.
I have several questions:
1)Should I try and contract the house at a wholesale price based on rental income, SFR owner occupied comps, or potential development opportunity. My feeling is rental income...but I'm just not sure. It seems, based on using the 50% rule, a buyer needing to cashflow $100/door, and me needing to pay a 60% wholesale amount that I could pay VERY little for the property and I feel that its worth more even wholesale value. Does anyone have suggestions on which technique I should use to come to the wholesale value I should pay?
2)I'd like to know more about the rental incomes and home comps in the area. Anyone know of a good way, other than zillow and rent.com, for me to determine rates and comps in an area that is 3 hours from me without access to MLS? Rent.com and other sites are worthless in this particular city and I dont trust talking to random realtors about it.
If I have brought up previously covered topics, sorry about that, I tried searching but did not find the answers so far.
Any help is greatly appreciated. He is ready to sign that option and I think I may have buyers, so I feel like I am on the cusp of a good deal!
Thanks,
Josh