Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 3 years ago on . Most recent reply

User Stats

20
Posts
3
Votes

Small Multi-family homes (2-4) 15MI radius around Joliet IL

Shawn Alexander
Posted

Hi all!

I currently have 1 SF rental in Joliet IL, been saving up and ready to start tansitioning into a small MF (2-4unit). With that being said I am looking at these MF homes and just confused on who wants to actually buy them. Most are selling from 300k-500k with a cap rate of 5% and a CoC return of 1-5%. Dropping 60k-100k for only 1-5% CoC return and a cap rate of 5% seems to be a waste of funds. Just bad deals or does anyone have any input? I could be missing something here.

Thanks!

Most Popular Reply

User Stats

178
Posts
120
Votes
Lucas Miles
  • Rental Property Investor
  • Fairmont, MN
120
Votes |
178
Posts
Lucas Miles
  • Rental Property Investor
  • Fairmont, MN
Replied

@Shawn Alexander lot of this has to do with market cycles. Last 10 years real estate has been a very good investment to most people. This has led to a lot of people who've made money, gained appreciation, etc and have a lot of cash to deploy into another investment. This  high demand to invest combined with record low interest rates and very easy to obtain financing have pushed cap rates down and people taking on deals with smaller margins. Who knows if this will continue or not or if there will be a correction. In today market you have to get creative by either finding better deals or creating better deals. 

Loading replies...