Good evening BP community!
I was making this post to see if anybody has ever bought 8 units plus in any of the Rio Grande Valley cities like McAllen, Brownsville, Edinburg, Donna, Harlingen, Mission, Weslaco, etc.
If so, what CAP rate did you purchase at and what do you consider to be a good price per door or CAP rate in cities in the Rio Grande Valley?
If I remember correctly the average(ish) CAP in Brownsville floats around 7-8% where McAllen is closer to 8-10% that said it varies heavily on the number of units and location of the property.
I can't tell you a good price per door because it varies depending on the complex you're looking at and your investment goals. Are you looking at C props? Value Adds? Or do you want stable B-A assets that you don't have to put any work into?
It depends on the numbers. Most of my buyers don't want anything under 40 units, and CAP rate alone isn't enough to move them.
What everyone wants is a poorly managed C-prop with value-add opportunity. If you have something built in the 80's or prior, hasn't been upgraded in a while, and has rents below market rate...then chances are I can find you a buyer fairly quickly.
Otherwise, it all depends on what value can be made after the sale. I don't have anyone looking to just buy and hold a stable asset.
@Account Closed then I have something for you!
Whats a good email to reach you?
I love this networking. I am looking for the same thing but in another state. BP is awesome.