Ohio 4-unit properties at 80% market value

[Jason H.]

Ohio I've noticed has some high cap rates for multi-family properties.  Can some of these properties be acquired for 80% market value and what does this entail?  Is it a situation where a cosmetic rehab is necessary for example?

[Brandon Sturgill]

@Jason H. this is a nearly impossible task for market listed properties in any market that is experiencing growth...in Ohio, Columbus is king with a projected population increase of 50,000 in the next 3-years...Cincinnati is growing marginally, and Cleveland, Toledo, and Dayton are bleeding population...all with net loss. You can find properties in any declining market at a discount...but the question you can never truly answer with 100% accuracy is the value of the property after it has been stabilized...in order to buy at discount, you'll be looking at properties that need work...or that have some functional obsolescence...you have to create value by improving the condition.

This is a more philosophical discussion, but you can buy anything at a discount from asking if your offer is accepted. The key to buying at discount is buying off market....or submitting an enormous volume of offers across multiple markets...