Does anyone know what current cap rates are in Indianapolis? I'm hoping to buy a mult-family unit and want to have an idea of current rates.
8 cap on commercial size I believe.
Indianapolis cap rates vary block by block, even if you're on the same street. What area are you looking at? As you know cap rates can be pretty subjective, which is why I try to focus on what my personal ROI needs to be for it to be worth buying.
What size and location? Large multi family is trading high low 5's to high 6s depending on location, class, etc. Market has been hot with out of state investors.
It really depends upon how good of an agent you can find to locate properties for you. Some off-market deals could have the potential for higher cap rates, and any investor-friendly agent is looking for them.
Thanks everyone! I don't have a specific area in mind just yet. Just trying to get a general feel for the market so I can make sure I'm negotiating correctly when we purchase in a few months.