Is This The New Normal?

[Christopher Munn]

I recently found a deal in the midwest (area where C class apartments trade between 7.5% and 11% cap rate).

16 units doing about 28k in NOI. (Not very good)

I own a 8 unit in the area that does about 30k NOI so this place has the potential to do around 60k with good management and a bit of reno.

The place sold to a cash buyer for 650k.

How are us "investors" supposed to compete with that??

I will stick to my standards but it becomes very frustrating when you aren't even close to being able to get a deal.

But we slog along...

[Omar Khan]

@Christopher Munn Congratulations for not overpaying or getting into a bidding war. The market is tough as everyone and their dog is "into" real estate. 

Stick to your conservative investment strategy, build up your dry powder and aggressively invest during the inevitable downturn (when that happens, I don't know...lol).