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Sean Brennan
  • Rental Property Investor
  • Manchester, NH
81
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447
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Multi-family Bubble?

Sean Brennan
  • Rental Property Investor
  • Manchester, NH
Posted Feb 7 2013, 20:14

I just appraised a 48 unit, 6 story building constructed in 1965. It is located in a nice suburb of Boston but not premier location. Value based on current market data: $185,000 per unit, 11 PGIM, 5.5% cap rate.

Is this sustainable? Will multi-family have a major correction when mortgage rates go up and new supply comes online?

Makes me nervous.

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