Buying Rental Properties
What is the % of FMV you all buy rentals at?
I speak to landlords wanting to sell them at 80% FMV.
I would like to get them under contract and flip them to other landlords but i dont know if this would be attractive to anyone.
Any input would be greatly appreciated.
Thanks
Verb
FMV is meaningless as far as rental property is concerned. If you had a $200k property that you got for 20% below FMV, you still would have negative cashflow in most markets. Cashflow is the key. There are many ways of calculating cashflow, but I think the simple ones work perfectly fine. If you want to sell a rental property, you need to be able to sell it for a maximum of 6 times the gross annual rent. Unless of course you find someone who is happy to hope and pray that it will appreciate and they aren't concerned with cashflow. Just by two bits.