What would you think I could sell my 8 unit apt. complex for in Muncie, IN

Indianapolis, Indiana
Buying & Selling Real Estate
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What would you think I could sell my 8 unit apt. complex for in Muncie, IN

Daniel StegelmanPro Member
Internal Medicine Physician · Muncie, IN · Member since 2017 · 26 posts · 6 votes
The apt. complex has unit has six 2 bed 1 baths and two 1 bed 1 baths. Total monthly revenue 5700/month for all units rented as LTRs. 25% percentile rent on Rent-o-meter. I just like getting my units rented ASAP. I have one unit that rents intermittently for 1290/month furnished. I have new plumbing and electric done in all of the units one year ago. 55k investment. This investment was mainly for the new washer and dryer units in every property. All units have vinyl plank flooring.

1% rule would make the listing price 570,000 using my LTR data. I've seen more recently it's the 0.75-0.8 rule now. Depends on the market of course. Obviously this is a very rough estimate of the selling price.

I'm looking to sell to get invested more in Indianapolis, IN for more short term rentals. STR market is so-so in Munice, IN. The 8 unit has been a nice long term unit and has potential for MTRs.

Thanks in advance!
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Jaycee GreenePro Member
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
1y

So, with that, I'm coming up with about $23K in annual operating expenses. If that's right, then your NOI (assuming no vacancy) is around $45k. I did a quick google search for cap rates on apts in Muncie and I got a range of 8.13% to 9.50%. Using the mid-point of 8.82%, that would imply a value of approximately $515,031.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    1y

    This is a terrible way to price a property. You should hire a seasoned real estate agent that understands the market.

    The DIY Landlord Book4.7247 Reviews
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  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    1y

    Hey @Daniel Stegelman, how much are your operating expenses?

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y
    Quote from @Daniel Stegelman:
    The apt. complex has unit has six 2 bed 1 baths and two 1 bed 1 baths. Total monthly revenue 5700/month for all units rented as LTRs. 25% percentile rent on Rent-o-meter. I just like getting my units rented ASAP. I have one unit that rents intermittently for 1290/month furnished. I have new plumbing and electric done in all of the units one year ago. 55k investment. This investment was mainly for the new washer and dryer units in every property. All units have vinyl plank flooring.

    1% rule would make the listing price 570,000 using my LTR data. I've seen more recently it's the 0.75-0.8 rule now. Depends on the market of course. Obviously this is a very rough estimate of the selling price.

    I'm looking to sell to get invested more in Indianapolis, IN for more short term rentals. STR market is so-so in Munice, IN. The 8 unit has been a nice long term unit and has potential for MTRs.

    Thanks in advance!

    What it the T-12 data and last years NOI ? I am guessing in Muncie the cap rate is probably 8-12% cap rate so take the NOI and come up with a comparable cap rate to determine the value.

    Also check what the price per unit is a on 2bed 1 bath unit is. For example I have some units in VT that are a 1.5% rule and am looking to move but have not had a  lot of bites and units sell for around $75k a piece 

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  • Daniel StegelmanPro Member
    OP
    Internal Medicine Physician · Muncie, IN · Member since 2017 · 26 posts · 6 votes
    1y
    Quote from @Jaycee Greene:

    Hey @Daniel Stegelman, how much are your operating expenses?

    I pay 10% total rent for management expenses. Tenants pay all utilities. I generally pay on average 400-500/month a month for basic maintenance and repairs. 5200/year for property taxes. 5000/year for insurance.
    0Reply
  • Daniel StegelmanPro Member
    OP
    Internal Medicine Physician · Muncie, IN · Member since 2017 · 26 posts · 6 votes
    1y
    Quote from @Chris Seveney:
    Quote from @Daniel Stegelman:
    The apt. complex has unit has six 2 bed 1 baths and two 1 bed 1 baths. Total monthly revenue 5700/month for all units rented as LTRs. 25% percentile rent on Rent-o-meter. I just like getting my units rented ASAP. I have one unit that rents intermittently for 1290/month furnished. I have new plumbing and electric done in all of the units one year ago. 55k investment. This investment was mainly for the new washer and dryer units in every property. All units have vinyl plank flooring.

    1% rule would make the listing price 570,000 using my LTR data. I've seen more recently it's the 0.75-0.8 rule now. Depends on the market of course. Obviously this is a very rough estimate of the selling price.

    I'm looking to sell to get invested more in Indianapolis, IN for more short term rentals. STR market is so-so in Munice, IN. The 8 unit has been a nice long term unit and has potential for MTRs.

    Thanks in advance!

    What it the T-12 data and last years NOI ? I am guessing in Muncie the cap rate is probably 8-12% cap rate so take the NOI and come up with a comparable cap rate to determine the value.

    Also check what the price per unit is a on 2bed 1 bath unit is. For example I have some units in VT that are a 1.5% rule and am looking to move but have not had a  lot of bites and units sell for around $75k a piece 


    I pay 10% total rent for management expenses. Tenants pay all utilities.
    I generally pay on average 400-500/month a month for basic maintenance
    and repairs. 5200/year for property taxes. 5000/year for insurance.

    NOI was around 46500/year using my numbers above for renting all as LTRs. I contacted my prop. management group which has software that shows this data. T-12 was 43078. I'm not familiar with T-12.
    0Reply
  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    1y

    So, with that, I'm coming up with about $23K in annual operating expenses. If that's right, then your NOI (assuming no vacancy) is around $45k. I did a quick google search for cap rates on apts in Muncie and I got a range of 8.13% to 9.50%. Using the mid-point of 8.82%, that would imply a value of approximately $515,031.

    [email protected]
    1Reply
  • Chris MullinaxBusiness Member
    Property Manager · Kokomo, IN · Member since 2020 · 172 posts · 44 votes
    1y

    Hi Daniel, here is an easy to use rent vs sell calculator that may give you a better answer for what you are looking for https://www.crmproperties.net/rent-sell-calculator

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  • Daniel StegelmanPro Member
    OP
    Internal Medicine Physician · Muncie, IN · Member since 2017 · 26 posts · 6 votes
    1y
    Just giving everyone an update. Listed 550k. Got over 40 inquires in 4 days. About 4 showings a day. Got an above listing offer in 4 days with someone who was able to get traditional financing through JP Morgan. I don't want to say the amount until I close. Got 110 saves on Zillow and 161 saves on FB marketplace listings. I have multiple buyers on standby. The market was way hotter than I thought.

    https://www.zillow.com/homedetails/709-S-Hutchinson-Ave-Munc...
    0Reply
  • Daniel StegelmanPro Member
    OP
    Internal Medicine Physician · Muncie, IN · Member since 2017 · 26 posts · 6 votes
    5mo
    1/21/2025Sold$560,000
    1Reply
    • Jaycee GreenePro Member
      Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
      5mo
      Quote from @Daniel Stegelman:
      1/21/2025Sold$560,000

      @Daniel Stegelman After selling the Muncie property, did you jump into the STR market in Indy per your original post?

      [email protected]
      0Reply
    • Daniel StegelmanPro Member
      OP
      Internal Medicine Physician · Muncie, IN · Member since 2017 · 26 posts · 6 votes
      2mo
      Quote from @Jaycee Greene:
      Quote from @Daniel Stegelman:
      1/21/2025Sold$560,000

      @Daniel Stegelman After selling the Muncie property, did you jump into the STR market in Indy per your original post?

      Sorry for the lat reply. Yes I did. I'm doing extremely well. Here is my current portfolio and management website westaybnb.com
      1Reply
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