Charles Village Baltimore 10 unit multifamily investment

[Haley Varner]

I'm looking at doing my first real estate investment in Charles Village Baltimore.  The property is a 7 unit 6,603 SF recently renovated brick 2-story.  100% leased with 5 1-brs, 1 2-br and 1 3-br.  Annual rent at 80k.  Gross expenses $24k.  Asking price $570k.  

Rent/unit seems to be at market currently and with the recent renovation I understand there's not a lot of potential "value add".  However, I'm thinking with the recent riots, investors are a bit gun shy here and I might get a low ball offer accepted.  Would a 10% cap be decent for this neighborhood?  John Hopkins is right down the street.  

Any feedback on your sentiments on Baltimore, return thresholds for this product type there or details around the Charles Village neighborhood much appreciated.  Many thanks!

[Ned Carey]

@Haley Varner a 10 cap in Charles Village would be very good. But this property is not a 10 cap. The expenses quoted are low. During your due diligence period you should be able to ferret out the real expenses.

Also consider the age and  condition of the systems in the building. Older systems are going to need more repairs and possible replacement soon.

Charles village is a good area of Baltimore. It is an area I would buy multi-families if I had the capital. I don't buy multi -families because the returns are not near as good as on SFHs here. On the surface this property seem s to be the exception.