What's a good cap rate for apartments/ multi family?
Hey guys I got a 6 plex with 2 houses and 14 apartments for sale but I just wanted to hear yall's opinions on what's a good cap rate for multi family properties here in the Rio Grande Valley.
You might be able to call a local commercial real estate broker and get your answer really fast!
Quote from @Martin Herrera Jr:
Hey guys I got a 6 plex with 2 houses and 14 apartments for sale but I just wanted to hear yall's opinions on what's a good cap rate for multi family properties here in the Rio Grande Valley.
I always go here. https://apartmentloanstore.com...
If you're planning on listing them I'd direct that question to the broker. Sometimes cap rates matter less with multifamily if there's value-add potential so some buyers are okay buying at a (let's say) 3 cap if after the rehab it's a 6+ (or whatever is good for that market).
If you don´t have access to Costar, you can also search "NAR commercial report" > your state> find the MSA. On the report go to multifamily and find cap rate. It´s not always accurate but it give you a good ballpark!