Cap rate in Sacramento

1 Reply

Hello BP members,

I am looking into some multi-family and small apartment buildings in the Sacramento, Ca area. Does anyone in this area know what the average cap rate is here? 

Hi Torey

On average, you can find MF in a wide range of cap rates, it really depends on the property, where it is located, deferred maint issues, and even number of units - there are lots of four plexes at 4% whereas you can fi d apt buildings at 7 to 7.5%.  That being said, Sac even has one close to a 9% which IMO s/b a 20% since it is such a wreck.   So...no one single answer would be adequate but you can find some decent ok deals at 7 or above.