Who's Wholesaling Small Multifamily?

I’m new to the site and want to get to know and network with those who are actively wholesaling small multifamily properties. Duplex, triplex and quads, 15-30 unit apartment complexes.

Also, can anyone point me in the direction of a thread(s) on the subject?

One last question…

I’ve been seriously contemplating getting in to multi-family units and need to know some differences.

What is the difference between a single family home set up in a way that has numerous doors located on the inside that are configured in to a 1 bedroom apartment and say a duplex, triplex, and fourplex?

Are these both considered multi-family? Multi-unit? As I know they are both residential. How do I go about sourcing these separately?

My confusion is that 3 (duplex, triplex, and quad) are all accessible from their own respective outside doors as opposed the the other (The single family with multiple units located on the inside with access from one central front door of the overall building leading to each respective units’ door which is located on the inside.) Would you please explain the difference if at all possible?

And if they are indeed different, how do I go about sourcing them? Making sure as to not mix up when I pull or request my marketing lists. Thanks in advance for your knowledge and reply!

Generally, you value 1-4 family units the same, that is, by “comps” or comparable sales. A three-family building is valued at $X per unit compared to similar buildings.

On buildings with 5 units and up, it’s considered “commercial”, and a commercial appraisal focuses mainly on income, expenses, and cap rates. Cap rate is calculated by taking annual net operating income (“NOI”) and dividing it by asking price.


You have 10 units that have market rent of $1,000 a month, so annual income is $120k. Subtract a vacancy factor and all operating expenses (not mortgage payments), and you get NOI. If, for example, vacancy and operating expenses were 50% of gross (fairly typical), then NOI would be $60k a year. At a $600k asking price, cap rate would be 10%. Note that mortgage payments are not figured in the equation, so it’s a measure of the building’s performance vis-a-vis the financing.

FYI, this analysis should be done “pro forma”, that is, likely best-case scenario, not necessarily present scenario. If present scenario IS the best-case, then you will pay a super premium in price, and your cap rate will stink. Find buildings (or owners) in distress, and change a poorly performing building into a good one.