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Wholesale multi family. Cap rates

Micheal Robinson
Posted Jul 14 2024, 09:13

In the Wayne County Michigan area for a duplex that's renovated, what are cap rates in that area an investor would seem to look for? I'm thinking 7-10 cap, but with other investors' knowledge could you guys give me some input on what an investor will look for in duplexes or multi-units in Wayne County? This property is fully renovated bringing in 20k a year, it's currently under market rent value so the next investor I assign it to can increase the rent, up to market value. But while analyzing, I just want to know the psychology of the end buyer/investor on what they look for in cap rates /in that market, etc. 

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Michael Smythe
Property Manager
#4 Managing Your Property Contributor
  • Property Manager
  • Metro Detroit
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Michael Smythe
Property Manager
#4 Managing Your Property Contributor
  • Property Manager
  • Metro Detroit
Replied Jul 14 2024, 09:45

What Neighborhood => Property Class?

If Class C, investors should expect 10%+

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Micheal Robinson
Replied Jul 14 2024, 10:16

Brightmoor is the neighborhood, so the categorization is Class C. 

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