Highest CAP rate you have ever purchased.

13 Replies

Curious as to the highest CAP rate on a deal you have bought .... one just fell in my lap that is like ~25% .... It's insane but it's an older guy that just wants to retire said that's what they are worth to him. LOL

Originally posted by @Jon Klaus :

I don't use cap rate on SFRs, but I bought one for 17k that needed little work and eventually rented it for $900 per month.  

 Yeah you would have been prolly 40%+ on that one lol 

Originally posted by @Patrick Gleason :

My current baby I bought @ $178k all in. She brings in $3900/mo in the warmer weather. Theres two things I hate about NE.. 1. Snow Removal 2. Heat bills    

 Damn dude congrats! That's legit! 

This one I'm looking at is an investor retiring so I'm hoping to pull it for about 245k 

12 units bringing in about 4g NOI

Then debt service will only cost me about 1800 a month ... :)

Small town 97-yo brick 10-unit mixed use for $250k, Had some value-add ($15k + my labor) but rents are about $4200/mo. At purchase my CAP was about 16%.

Nice thread @DJ Carroll and congrats to all on some fabulous deals!

@DJ Carroll  POS  MHP full of tweakers and low lifes

paid just under 100k  14 spaces one house two apartmetns... putting about 30k into it.

Gross rents right at 7k a month....

the 30k includes rehab of house and apartments  and new metoring system so tenants pay for water themselves and haul 3 trailers to the dump...

Once stabilized this is a west coast ( Eugene Oregon) park it will sell for mid 300 s I am thinking

Originally posted by @Steve Vaughan :

Small town 97-yo brick 10-unit mixed use for $250k, Had some value-add ($15k + my labor) but rents are about $4200/mo. At purchase my CAP was about 16%.

Nice thread @DJ Carroll and congrats to all on some fabulous deals!

 Very cool! Yes this one is a little older as well but I think it's right there in line with your numbers! SWEET! 

Originally posted by @Jay Hinrichs :

@DJ Carroll  POS  MHP full of tweakers and low lifes

paid just under 100k  14 spaces one house two apartmetns... putting about 30k into it.

Gross rents right at 7k a month....

the 30k includes rehab of house and apartments  and new metoring system so tenants pay for water themselves and haul 3 trailers to the dump...

Once stabilized this is a west coast ( Eugene Oregon) park it will sell for mid 300 s I am thinking

Very Nice! This one is in a working class area - not sure on the tenants yet although I do know they are all long term. I think I'm going to buy it - wait 6 months and then re-list it at about a 12% CAP and make a nice profit.

Originally posted by @DJ Carroll:

Very Nice! This one is in a working class area - not sure on the tenants yet although I do know they are all long term. I think I'm going to buy it - wait 6 months and then re-list it at about a 12% CAP and make a nice profit.

Good luck with that.  That's like me saying I'm buying a house at $100,000 and expect a profit by listing it 6 months later at $150,000.  Easy money.

What makes you think the market won't be buying your NOI at 15% six months from now. Hell, how do you know you aren't buying at lower than market cap rate NOW?

Originally posted by @Jay Hinrichs :

@DJ Carroll  POS  MHP full of tweakers and low lifes

paid just under 100k  14 spaces one house two apartmetns... putting about 30k into it.

Gross rents right at 7k a month....

the 30k includes rehab of house and apartments  and new metoring system so tenants pay for water themselves and haul 3 trailers to the dump...

Once stabilized this is a west coast ( Eugene Oregon) park it will sell for mid 300 s I am thinking

Damnnnn @Jay Hinrichs!!!!  How did that one fall in your lap?  

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