Anyone know the current average CAP rate in Des Moines and/or the Quad Cities (both Iowa and Illinois sides of the River) for smaller apartments (8-24 units)?
Na but the rule of thumb is 8 or better its all about the numbers
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Hi Clint. I've been following the Des Moines market for a year. Apartment buildings are very hard to find, most that come on the market are negative cash flow with cap rates in the 6% range.
Thanks Todd. I've just started looking at the Des Moines market and all I've found is what you described, but was hoping that's just what's on the market at the moment, and not representative of the market as a whole. Are there any good markets in Iowa right now?
Iowa City cap rate is around 8% and cash flow is solid. If interested, I can get you in touch with a solid investor broker who also owns a property management firm (best in the area). I know all this because I worked there and maintained some very profitable accounts with less than 1% vacancy.
Currently, I work for one of the biggest realty firms in Des Moines and there are good multifamily deals, but lots of investors buying. Most never makes it to the open market. Message me if you want to discuss more!
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