Multifamily Cap Rates in San Antonio

[Julio Ordonez]

Hello BP, I'm a new Multifamily Investor in San Antonio and I'm looking at properties in Government Hill and Denver Heights.  Can anyone tell me what the current market cap rates are for Class C multifamily properties in Government Hill and Denver Heights?  Any information would be helpful.  Thanks in advance.

[Joseph Cacciapaglia]

What size properties are you looking at? There aren't many 5+ unit properties trading in those areas, and the 2-4 market doesn't really trade on a cap rate basis, because it's very owner occupied heavy. The only reliable data you'll get will be GRM. There are also a lot of people converting some of their units to vacation rentals, which further skews the numbers. If you're a true cap rate focused investor, I don't think either of those areas are going to present appealing options.