Cap rate for non-commercial multi units in Boise ID

Cap rate for non-commercial multi units in Boise ID

Flipper · Boise, ID · Member since 2013 · 41 posts · 4 votes

Hello Bigger Pockets community!

We are selling a duplex in Boise and are hoping to get some help determining what a fair cap rate would be.  Neighborhood is West Downtown/North End adjacent.  From what we've been able to determine, cap rates seem to be all over the place in this market right now.

Thanks much! 

Kathlyn Lewis

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  • Jonna WeberPro Member
    Moderator
    Investor · Boise, ID · Member since 2011 · 1k+ posts · 736 votes
    9y

    Hi @Kathlyn Lewis - In that area and size of multi-family, I would also consider pricing it more towards the single family market as well if the numbers work out better that way. I have had many clients looking for (and a couple that have bought) a primary home in that area in which they can rent out an Accessory Dwelling Unit or smaller unit as a short term or long term rental.  You can market it both ways.

  • Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
    9y
    A duplex will be appraised based on comps, not cap rate, so there is no reason to use cap to set a sale price. Find sold comps in the area and use that to determine sale price.
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