Alaska Multi family commercial deal evaluation
What should I expect for Cap rate c class multi-family in Fairbanks, AK?
I am trying to set my value for a 6 unit property that should rent for $6000-6900 but is currently only renting around $4900 as one of the unit is getting remodeling. The property has been well cared for but under managed for some time. It has a long history of a least one unit vacant in the past few years(not market driven). The building was new in 1975 and has some updated throughout but it does not show as new and current. Boiler is around 12 years old. Owner is open the lease option or owner finance.
-I am calculating cap rate at 10.5%
-Cash flow $1300ish (rent dependent proforma)
-utilities avg $1000-2000 throughout the year
-asking price is $365k