Small Multi-family homes (2-4) 15MI radius around Joliet IL

[Shawn Alexander]

Hi all!

I currently have 1 SF rental in Joliet IL, been saving up and ready to start tansitioning into a small MF (2-4unit). With that being said I am looking at these MF homes and just confused on who wants to actually buy them. Most are selling from 300k-500k with a cap rate of 5% and a CoC return of 1-5%. Dropping 60k-100k for only 1-5% CoC return and a cap rate of 5% seems to be a waste of funds. Just bad deals or does anyone have any input? I could be missing something here.

Thanks!