Finding apartments in Dallas Fort Worth area

[Sam Usman]

Hi - I am looking for my first commercial apartment deal in Dallas Fort Worth metroplex. My range is around 1.2 million and so I am looking for a smaller apartment building. I have some multifamily homes in Philadelphia and this would be my investment in DFW area. I am looking for apartment deals for the last few 4 months but the best I can find (in a decent area) is 7% cap rate. The problem that I see with most of the 7% cap rate deals is that either the building is too old (80+ years old) OR the numbers does not make sense (like seller shows low expenses...less than 40% etc.). I want to know from the experienced investors if I am missing anything?...do i need to work more hard to find good deals? Is it even possible to find a good deal (7.5% cap or more) these days in DFW area? 

[Lucia Rushton]

@Sam Usman. You are looking at the numbers correctly. Dallas is a strong market and currently still very hot. There are plenty of sellers still wanting top dollar. And there are buyers paying at or above ask ( risky in my opinion). I know my commercial broker friends don’t like me saying this but please do not buy on pro forms, especially in the current economic climate.

Do you have a team on the ground here?