Cincinnati Market Cap Rates/ GRM: Can you confirm my figures?

5 Replies

Hello Friends, especially those investing in metro Cincinnati,

  I hope you're all doing well, and looking forward to Thanksgiving!

  Now, here is a question that might draw a facepalm (esp those who know how street-to-street Cincy can be), but here's a question: Around Norwood, what would you say the typical 1) cap rates, and 2) gross rent multipliers, are you seeing for properties in that market (let's assume C class properties, or well cared for/ rehabed Turn of the 20th century houses in that area)?

My general gloss is showing that it's possible to likely get around a 7-9 % Cap rate, and likely an 8-9 GRM.

  Would you guys agree with this as a generic starting point?

  Thanks!

-Tanner

@joe fairless

   Great, thank you Joe – I appreciate it!  This helps me feel more confident in my valuations for a potential property package. 

Tanner,

Best of luck with this acquisition. You've gotten some good advice. We're active wholesalers in Cincinnati and are always tracking what the market is doing. Please let me know how it turns out. 

Regards,

Chuck Stagliano

I own several commercial and mixed use properties in and around Cincinnati.  I am mostly a value add buyer but sell the finished product at 10 caps.  Like everywhere, deals are getting harder to find.