Does this rule of thumb hold up for larger multifamily properties (above 4plex)?

I am not even going to go into mangement problems, tenant drama, domestic and violet crimes, vacancies and rent collection issues..I have seen the backend of the story as well, because I am getting calls from out of state investors, who have accumulated small portfolios of these low end properties and when they start they are loosing money after a few years they want to liquidate the portfolio which is not that easy. 

You need something more sophisticated though for these larger deals. 

Yes the median sales price can be misleading for that area that has significantly less sales volume than a larger metro area like Phoenix. 

Why I’m asking is because this property is listed about $220k below a house around the block that is a larger lot that has two bungalows on it.

I like to use $50 per month or 5% whatever is larger.

Markets in rural areas are on fire, but it seems some of the larger markets are still growing.

RUBS is usually more for larger buildings, but hopefully the properties by you are split up to begin with to make it easier

@Zachary BellinghausenA couple thoughts.......Your notion to combine equity and buy something larger makes total sense to me.You can sell subject to the lease.

And the home runs totally made up for it.. for the average investor this would probably be a non starter.. but larger well capitalized companies that do it for a living its just SOP and my company was not the only one doing this.. the laws in Oregon and WA changed in 08 ish and foreclosure rescue lease backs became illegal or highly regulated as to be not worth doing..