multi family commercial purchase repostitioning potential

[John Brinkos]

I am negotiating a 64 unit C/C-D in the Richmond, VA area. What is the normal Caprate/unit price? Property is on the southeast side right near I-295 south of I-95. I am looking at an ask in the neighborhood of 7.4% which seems very high. Agents telling me that is about right in Richmond but it seem high to me for an unimproved 50 year old property without HVAC or any other upgrades. John

[Adrian Stamer]

Originally posted by @Travis Shaw:

@Adrian Stamer Im curious why you say "Trap someone with it" when referring to the property. Do you mean at C-D it is a POS, or that you are more likely to get a ride with Richard Branson to Mars than find a good MF deal here in RVA?

 People gloss over it's a C-D property and the numbers look good on paper. Though at 7.4 cap that's pretty lousy still, unlikely to cash flow without some sweet value add play

Investors are just desperate for these properties, with the smaller multis there are under 50 on the market... haven't seen it that low in a while.  

So both?