Calculating Replacement Costs in Multifamily

[Adriel Cisneros]

Hello BiggerPockets family  - 

In my view, both employment and population growth are important but incomplete factors when considering acquiring an asset if the replacement cost is lower than the appraised value of the small apartment.

For this reason, I would prefer to invest in Chicago compared to a city like Austin, TX USA. 

However, where do you find reliable contractors or brokers who can provide this type of data? 

Acquisition target: triplexes in Chicago north of I 290

[Adriel Cisneros]

@Jonathan Klemm 

Appreciate the insight. 

I don't disagree with the concept of building a great team. My only concern is tenancy laws in Cook County and vacancy risk with smaller acquisition targets. 

One bad tenant can absolutely crush your NOI and thus every subsequent metric.

Open to having a conversation offline. Have a great Monday.