Are you still finding multifamily are over priced ?
I know this has been discussed before sometime back. I'm Curious to what other are running into.
I keep looking at apartment building for sale, run the numbers, earthier I'm doing something wrong or sellers is way off.
Example;
11 units asking 550k,
Ran the numbers, did scenarios of different amounts of down payments to see when there was a cash on cash return of at least 10%.Had to get to 50% of property value down before that happened, realistically I think the true value is around 340K. With a 100k down she has cash on cash return of just over 10%.
This is just one of many I have looked at; I’m assuming the trend is to over price and hope that an international or institutional invest comes along?
Orrrrr, am I out there like Pluto man.
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I do 100% of my apartment business in mid- Michigan. Two bedroom units are going for $30k a door. I have purchased a 20 unit and a 17 unit in the last three months. There are plenty of owners that have "had it up to here!" with their tenants (tenants that THEY chose oddly enough...) so there will always be motivated sellers.