Multi-Family (Quadplex) Wholesale Question

[Rickey Miller Jr]

As the description mentions a seller that wants to sell their quadplex at the price she's asking it's getting great returns for the next investor and is cash-flowing quite well. She asking $240,000 and I talked to her down to $210,000 and was curious if an investor would purchase this property at $215,000 to allow me to collect an assignment of $5,000.

I personally wanted to ask this group to kind of get an understand on what investors/wholesalers think. I'm sure, and see if makes since for someone to purchase an off market property at a discount. More information about the quadplex will be listed below such as comparables and what the property is bringing in. All units at the moment are occupied and two tenants are on month to month.

Report: View report 

Rent: $650 per Unit. | NOI $16,607 | CoC: 14.94 | Cap R: 7.72% | CashF: $611.56 | Year Build: 2006 |

Vacancy: 5% | CapEx: 7% | P Management: 10% | Repairs: 6% | 

Comparables within half mile.

4003 Madison Dr Killeen 76543: $244,000 08/22/2019

3800 Malibu Ln Killeen 76543: $265,000 12/05/2019

1401 Dugger Cir Killeen 76543: $250,000 09/01/2019

Thank you by the way for any information or input on this matter just wanted to see if it makes sense for an investor at this present day before I tell the home owner and agree with that price. Also usually I understand the 70 percent rule but with this given purchase price at $215,000 a buy and hold investor will be able to get a great return. 

[Charles Carillo]

@Rickey Miller Jr

The issue with purchasing properties for cashflow at this time is that there is uncertainty about the next few months and what jobs will be affected along with what tenants will not be able to pay next month or the month after. This is keeping most long-term investors on the sidelines. I would keep in touch with the seller and possibly follow up with regularly.

[Rickey Miller Jr]

@Charles Carillo Thank you by the way for your information, I'll keep that in mind and see what we can do and just keep a constant relationship. Then doing so reach out to other investors and see if there still interested in adding to their portfolio.