Just looking for multi-family cap rate in Fort Wayne, IN.
We own one duplex and it was advertised at 16% and that's been pretty consistent for the last five years. Hope that helps!
Depends on the asset and where.
Larger multifamilies are are being listed for 5-7 caps. Of course, they advertise much higher caps (10+), but when you underwrite it, it shakes out to be much less.
The last 3 duplexes I purchased where purchased at 10%, 9.1% and 8.8% (all in 2015/2016). However, I bought these with seller financing, so may have paid a bit more for them, and I MIGHT have been able to get higher caps by paying less, had I used my own money. My SFR's are all over the map.
Make sense? Helpful?
fort Wayne's market has been hot all year. If you are looking for something more on the turn key side of things I think drew is right on the money. That being said there is some upportunity to find some value add properties that could push those higher caps. Just takes some hustle and networking. If you jump on LoopNet their is like 3-4 larger Multies that can give you an idea of what the on market options look like.
I hope I could help. I personally have only done a few deals but I am pretty familiar with the market has a whole.
Check the local cap rates for the buildings your are interested in your area. Compare and contrast for the most accurate results.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing