I am a California investor who has come across a 40 unit apartment complex opportunity in the Boise area. The challenge is I am not extremely familiar with Boise but am doing quite a bit of research in an attempt to get myself up to speed. I have a few questions if anyone is willing to help me:
1. Any recommendations on property managers for a 40 unit building?
2. Any general thoughts on Nampa? Does it need to be looked at on a street by street basis?
3. What cap rates can I expect in the Boise area?
4. Are eviction laws landlord friendly?
I am coming up on October 2 and will be looking at the property on October 3, if anyone is interested in having a pseudo meet up on Monday night to have a discussion and watch some football I would be happy to host. Thank you in advance!
@Ivan Dodic Congrats! I hope it works out well. Idaho is a landlord friendly state. I can't speak on the Boise area, I am about 4 hours East of there and invest around my area. There are a few large apts near me as well if you are interested in expanding your search, let me know and I can send you some. My area typical cap rates are between 6-8. But there are quite a few under market rents that could be increased.
We have invested in Nampa and are happy with our acquisitions. You are correct in your assumption that it does need to be looked at by neighborhood certainly.
Water costs have increased significantly recently. Taxes have increased as well due to mis-management of school funds and overall growing pains for the city. Property insurance is higher also in certain zip codes due to increased crime.
Balancing the increases is the rent. This is partly due to the tight market we have in the area for single-family homes. Many rental properties are being put on the market, occupants are being forced to move out into new rental units causing a huge increase in demand and a spike in rents.
Enjoy your time in Boise,
HI @Ivan Dodic - It sounds like you may have the property under contract? If so, congratulations! Your Realtor should be able to help with some of these questions. 40 units is no small undertaking!
@Claire Fenton is a good resource for property management. Cap rates are modest - but buying in the right area could be the difference in an OK investment, and a brilliant one.
Best of luck!
It seems like a 6-cap is the new norm around here. There is some cap rate compression with an influx of inventory. There has been an apartment complex boom in Boise for the last three years with a ton of new units coming on-line. Nampa and Boise are often looked at as different markets in this valley even though they are connected generally speaking. Nampa has been undergoing some efforts to improve crime rates. I would definitely check out the neighborhood prior to purchasing. There are great parts of Nampa, and also not so great, so I recommend putting your eyes on it.
@tyler resnick, @Don Spafford, @ dori rutledge, @jonna Weber - thank you all for the information, it is extremely helpful. I look forward to checking out the area next week...thanks!
How did it turn out?
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing