Investing in the San Fernando Valley?

[Richard Naimy]

Hello my LA BP Peeps, Was hoping someone with experiences in buying Multi Family properties (4 units) in the San Fernando Valley could help with what is a realistic Cap Rate, Cash on Cash and NOI deal in our current market? Am I being unrealistic thinking I can find 8 to 10% Cap rate, or 10 to 12% cash on cash in the current market? Thanks for the help in advance :-) Richard

[Nabil Suleiman]

@Richard Naimy

Hey Richard. For our area, those Cap's are definitely hard to find, but depending on how you are coming across deals there are numerous ways you can achieve 10-12% cash on cash.(I.e relationships/ off-market) If you are primarily using the internet and agents to find you deals it may be tough because most listings are attempting to sell closer to pro forma prices vs whats realistic to its current condition & rents. You are more likely to find those caps out of state or in rural areas of CA. I have had investors find multifamily deals that met their CAP expectations as far as 29 palms, you just have to be willing to take the drive.

Good Luck.