Smart ways to finding small apartment complexs in a HOTT market

[Jonathan M.]

Hi everyone 

I've been looking for 7 months now for a small apartment complex with 6 units or more with no luck.

Problem is prices are too high to justify cap rates of existing listings on Loopnet/MLS,

Where do I look to find a decent deal? Also thinking about some idea's on maybe improving upon a dead listing to improve ROI. Anyone thinking outside the box in this hot market? love to hear them!

I am pre-approved for 750K, looking in west coast of Florida St Pete,Tampa,Bradenton,Sarasota. Need a 10 cap, at-least 100k in gross income.

[Omar Khan]

@Jonathan Dempsey Best of luck finding a 10 cap in an area where the chances of getting stabbed are less than 100%. 

You live in a very hot market and it's hot for a reason - high growth prospects, diversified economy and a great weather (might not feel like it at this time of the year). 

You could find this mythical 10 cap creature by going to a war zone or buying a piece of absolute crap but then the 10 cap returns would only be on paper i.e. you will have little to no chance of collecting most of the rental income due to you.

This article might help you: 

https://www.biggerpockets.com/member-blogs/10776/77428-the-cap-rate-is-dead-long-live-the-cap-rate