Tiny Markets and no Market Cap Rates
Analyzing a few 5+ unit deals in an ultra small market, where even local commercial brokers and lenders say “we don’t really use market cap rates, we just order a third party appraisal” to determine value. I have “actuals” and have calculated exact NOI, but have no market cap rate to divide by to project current value and ARV once repositioned. Anyone else run in to this? Solutions?