Domenick, From the two sites you recommend me do they show me the Gross Rent Multiplier of a certain city, also are these sites more accurate with information than mashvisor.com?

Thanks for your thoughts @Paul Jamgotch .The way I have to look at it is that I bring 3 pieces to the table:The ability to put an investment partnership together and make them moneyThe ability to handle the real estate transaction on the buy and sell, saving 6% of net at a minimumA contractor with skin in the game, who also owns a cabinet shop and handles many of the sub jobs personally.These investors see what a tremendous opportunity they have to multiply their return compared to their current vehicle.

Then take that # and multiply it by about .65 to give you an approx on the most an investor should roughly spend if flipping or wholesaling it.  

I look at the GRM (gross rent multiplier = purchase price / current annual rent).  

The main reason I ask is I feel a lot of the property I am looking at is overpriced but the majority of the property I'm looking at is on the MLS and as of right now I'm working with an agent looking (trying to multiply my time I guess).

Well, the rub is that the builderdeveloper is probably trying to sell the building to some fund or investor and if you multiply that extra $200/month in rent by a 5% CAP rate they (the builder/developer) will net roughly an extra $50K in additional sales price when they sell.  

(Quad) Property(Quad) PropertyBeds/Baths: 8 / 6Beds/Baths: 8 / 6Type: Multi-FamilyType: Multi-FamilyYear Built: 1980Year Built: 1980Square Footage: 2,813Square Footage: 2,813Lot Size: 0 sq ftLot Size: 0 sq ftParking: On-StreetParking: On-StreetMLS #: undefinedMLS #: undefined** Purchase **** Purchase **Purchase Price: $180,000 ($64/sq ft)Purchase Price: $235,000 ($83.5/sq ft)Purchase Costs: $3,600Purchase Costs: $4,700Rehab Costs: $0Rehab Costs: $0** Financing **** Financing **Down Payment: $45,000 (25%)Down Payment: $58,750 (25%)Mortgage Amount: $135,000Mortgage Amount: $176,250Total Cash Needed: $48,600Total Cash Needed: $63,450** Cash Flow (Monthly) **** Cash Flow (Monthly) **Rent: $3,200Rent: $3,200Vacancy: -$320 (10%)Vacancy: -$320 (10%)Expenses: -$1,343Expenses: -$1,343Net Operating Income: = $1,537Net Operating Income: = $1,537Mortgage Payment: -$684Mortgage Payment: -$893Cash Flow: = $853 ($213 per unit)Cash Flow: = $644 ($161 per unit)** Returns **** Returns **Cap Rate: 10.2%Cap Rate: 7.8%Cash on Cash: 21.1%Cash on Cash: 12.2%Return on Investment: -102.5%Return on Investment: -169.8%Internal Rate of Return: -94.7%Internal Rate of Return: -100%Rent to Price: 1.8%Rent to Price: 1.4%Gross Rent Multiplier: 4.7Gross Rent Multiplier: 6.1

Once you’ve established the ARV, multiply it by 70%, and then subtract the anticipated cost for repairs. 

You need to factor in the penalties for paying this off early as well as the interest you'd be paying until you pay it off.Basically though, you're saying that you'd build each townhome for as low as $132,000 then sell it a few months later for $300,000, except you're multiplying it by 143 units.

GRM (gross rent multiplier) also comes into play (and may be the primary form of valuation for this type of property, depending on a few specifics), but the same principle applies.Higher rent = higher valueDepending on the property and lender, they may want to include expenses, vacancy, delinquency, etc in their calculation.