Cap Rates on Small Multifamily Right Now?

Question

What cap rates are you guys actually seeing on small multifamily right now?

Bill B. · Answer

Cap rates usually don’t come in to play unless you’re talking 5+ units. 2-4 units are usually “comps” based.

If you are talking 5-12 unit SMF that’s going to be based on the property type, the age, the condition, the local market regulations, and the cost of taxes & insurance. It can truly change by zip code in the same city.

If you have a specific market in mind. Put it in your post and local experts who have that city has a keyword will be notified and respond.