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?
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.