Updated about 9 years ago on . Most recent reply
Cap Rate on a Duplex in Toledo OH?
Hi All, I'm looking at a duplex in the 43613 (west toledo) area code. The seller may finance the deal so I'm putting together a bid. I don't see many comps in the area that have sold recently so I'm struggling to figure out what a normal cap rate might be for a duplex in that area. Can anyone help with their thoughts on what a reasonable cap rate might be for a duplex in West Toledo?
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Based on my original question in this thread, I've collected some more data to try and get a sense of the cap rates on multi-family properties in the West Toledo, Maumee & Sylvania.
I am surprised to see nothing above the 10% cap rate....and in fact very little over 9%. The average for the 27 properties listed here is about 6.6%. Does that surprise anyone here? What do you look for in a cap rate for multi-family properties in these areas?
| Property ID | Capitalization Rate | Cash on Cash Return (Traditional Financing) | Annual Cash Flow | GRM | 1% Rule |
| Property 1 - Sold | 9.97% | 28% | $ 9,204 | 66.6 | 1.50% |
| Property 2 | 9.01% | 24% | $ 5,640 | 66.6 | 1.50% |
| Property 3 | 7.96% | 18% | $ 7,176 | 75.3 | 1.33% |
| Property 4 | 7.89% | 19% | $ 3,528 | 76.0 | 1.32% |
| Property 5 | 7.81% | 18% | $ 3,660 | 76.8 | 1.30% |
| Property 6 | 7.77% | 17% | $ 2,952 | 77.2 | 1.30% |
| Property 7 | 7.58% | 17% | $ 3,360 | 79.1 | 1.26% |
| Property 8 | 7.51% | 17% | $ 3,360 | 79.9 | 1.25% |
| Property 9 | 7.51% | 17% | $ 3,360 | 79.9 | 1.25% |
| Property 10 | 7.17% | 14% | $ 2,586 | 83.6 | 1.20% |
| Property 11 | 6.75% | 12% | $ 4,404 | 88.9 | 1.13% |
| Property 12 | 6.52% | 12% | $ 2,688 | 92.0 | 1.09% |
| Property 13 | 6.51% | 12% | $ 3,000 | 92.1 | 1.09% |
| Property 14 | 6.43% | 11% | $ 2,388 | 93.3 | 1.07% |
| Property 15 | 6.36% | 10% | $ 2,376 | 94.3 | 1.06% |
| Property 16 | 6.23% | 10% | $ 2,748 | 96.4 | 1.04% |
| Property 17 | 6.13% | 9% | $ 2,337 | 57.1 | 1.75% |
| Property 18 | 6.00% | 9% | $ 3,408 | 100.0 | 1.00% |
| Property 19 | 5.87% | 8% | $ 1,998 | 57.8 | 1.73% |
| Property 20 | 5.63% | 7% | $ 7,326 | 106.5 | 0.94% |
| Property 21 | 5.60% | 3% | $ 840 | 107.1 | 0.93% |
| Property 22 | 5.20% | 5% | $ 2,700 | 115.3 | 0.87% |
| Property 23 | 5.13% | 4% | $ 1,356 | 117.1 | 0.85% |
| Property 24 | 5.09% | 4% | $ 1,308 | 117.9 | 0.85% |
| Property 25 | 5.08% | 5% | $ 1,200 | 118.1 | 0.85% |
| Property 26 | 4.97% | 3% | $ 1,128 | 120.7 | 0.83% |
| Property 27 | 4.62% | 2% | $ 600 | 129.9 | 0.77% |