Multi-Family and Apartment Investing
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal


Real Estate Classifieds
Reviews & Feedback
Updated about 10 years ago on . Most recent reply

Advice on a property
I hope it's not against the rules to ask questions about a specific property but I'm looking at the following apartment building. It's currently located less than a city block from a major state university. Looks to be in decent condition (referencing pictures only at the moment). It's showing a NOI of $29,608 so the Cap rate should be about 8.4%. Not sure where they're getting 9.65. At first glance, assuming the building/units need only minor repair, would this be considered a good deal?
Price: $350,000 No. Units: 12 Building Size: 11,979 SF Price/Unit: $29,166.67 Property Type: Multifamily Property Sub-type: Garden/Low-Rise Commission Split: 3% Cap Rate: 9.65% Gross Rent Multiplier: 5.74 Occupancy: 90%Most Popular Reply

Just to confirm: an 8.4% cap rate does NOT equate to an 8.4% rate of return on your investment. The two are different topics. I'm sure @Bill Jacobsen knows this, but just wanted to "overcommunicate" that truth, since I've seen it confused before.