Skip to content
Multi-Family and Apartment Investing

User Stats

39
Posts
17
Votes
Branton B.
  • Investor
  • Las Vegas, NV
17
Votes |
39
Posts

Tiny Markets and no Market Cap Rates

Branton B.
  • Investor
  • Las Vegas, NV
Posted Dec 19 2017, 15:14
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?

Loading replies...