Evaluating an Investment-ADVICE?
We have an opportunity to purchase a portfolio of about 30 doors (22 SFH/Duplexes). How do I determine the desired CAP RATE/Price?
I have rental amounts (about 15% below market), all are on 1 years leases with auto renew and 5% rent increase (100% occupancy). 15 roofs are new and the rest are less than 10 years. Older properties (1950-1960s). I have rents, taxes, insurance and their maintenance costs. It is out of state and I am not familiar with it, however, I have talked with a local agent that has lived there all of her life. The area is smaller but has had consistent growth over time with military logistics and several large employers along with a Hospital (sorry if that is too much detail). Some crime but not terrible.
We are new to this type of investment so not sure how to determine the right price.
(Then...we'll find investment partners...and figure that out too!)
Thank you!