Many MLS properties are initially listed for more than their true value.

Good afternoon Bigger Pockets Fam, my name is Jamall and I’m a newbie and I’m looking forward to networking, building, and adding value to the community. 

To keep things simple let's value the building on a 1% basis.

Our firm always liked the area and a value add deal fell into our lap in 2023.

First, to say that the PM is against the owner's interest means that either you do not understand the value of the PM OR the PM is not adding value.

If you can afford to hang on to it, do some value add and be okay with less than ideal cash flow for the first few years, you should still do fine, but most people want that instant cash flow.

And like Chris notes, if you start getting added to a dozen syndicator lists, all of whom are buying large-scale, Class B, Value-Add Multifamily deals in the suburbs of major metros, and 2-3 are projecting 30% returns, 2-3 projecting 20% return, and the remainder are in the mid-teens, I would really dig hard as to what is going into those 20-30% projections.  

Then determine what the properties are currently worth, find out what the after repair value (ARV) could be, and then start getting bids from contractors to do the work. 

The approach for a well valued home is to either offer a reasonable amount above asking, or an escalation clause of X amount above the next highest and verifiable written offer up to a maximum price. 

Many DSCR lenders are capped at a minimum value of $75k and a minimum loan amount of $55k