We approached the seller of this 5-unit multifamily a couple months back after noticing this property was on and off the market for the past 5 years! They had not been able to sell it, but with the current market conditions here in Ohio we knew this property was not getting listed properly or else it would have sold years ago.
The last agents who were hired to sell forgot to put the only thing investors/buyers want to see. The NUMBERS!
This is a 5-unit, so its considered commercial and should be sold based on its net income and a cap rate. Well the previous people in charge of the sale, based the listing price off a sales comparison approach which you would only use on a residential sale or a 2-4 unit multifamily dwelling.
Long story short, the numbers sold this place in less than 24 hours at an 11% price increase from the original listing. The Cap Rate was in the high 10+ range, and Cash on Cash returns of around 28%.
On to the next one!