Edmonton Multifamily Deal
Hello all!
I'm an investor based out of Vancouver and am currently under contract for a 12 unit property in Edmonton. I'm looking for some input from locals who are familiar with apartment cap rates and can help scrutinize the deal for me. The property is located in Canora and is mainly 1 bedrooms with bachelors and 3 beds mixed in. Most major improvements have been completed and 4 units have been recently renovated. Property is currently fully occupied.
Purchase Price: $1,3740,000
Gross income:$128,000
Expenses come out to a bit over 50%
NOI: $61,000
Research I've pulled on Edmonton indicated that cap rates for low rise B buildings are between 5-6%. I do feel like this deal is overvalued and I'm wondering if any local investors can chip in with their opinions on the value of this. How is the market for small multis moving?
Thanks!