Is it reasonable to estimate 12-15% CAP rate in the NWI area for multi-family/apartment buildings?
how hot is this market now for multi family? Can you find B-grade neighborhoods around here or just low C and D?
Looking at towns like Crown point, Hobart, Merrillville, lake station, portage, Griffith, highland and Hammond.
My partner and I are interested in this area and would love to meet up with anyone who we could work with. I'll be in Chicago the next two days (Jan 9-10).
I can't specifically comment on cap rates for MFHs here in the area. We mainly focus on SFHs and some small commercial.
In general, the market for everything is hot right now. Homes are selling fast and rentals are filling up fast. On a 2bed apartment, you can expect between $800-1100/m depending on size, location, and amenities.
Crown Point, Highland, and Griffith are all solid B areas. Hobart, Merrillville, Hammond, and Lake Station are a mix of Bs, and Cs and that's area dependent.
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