Multi Family Parcel deal in Cincinnati. 7 property bundle.

[Andrew Cheek]

Hello again Cincinnati BP!! I was curious at a high level how would we evaluate a deal like this listing from Loopnet?

https://www.loopnet.com/Listing/Portfolio-7-Multifamily-Properties/24256250/

To me the CAP rate is way to low I don't understand that at all. 30% operating costs seems like a reasonable estimate but I haven't really seen sub 5% cap rate before. The properties look like capex is needed for sure. I guess to start do any of you fellow investors have thoughts on a deal like this? What are the risks? How can we better value this deal?

Perhaps current owner is bundling cheaply so they can 1031 easier instead of selling one by one?

Thank you for your thoughts everyone.