Bronzeville Chicago - Cap Rate Trend
Hello Bigger Pockets!
I had a little down time, so I decided to analyze cap rates in Bronzeville Chicago!
The chart shown above is based on cap rates for Multi-Family properties
with 5+ units.
Note that cap rates are rarely listed on MLS Listings. These cap rates were
estimated based on the assumption that expenses would run you 50% of stated
gross income.
I decided to use a 2 year average to smooth out the curve a bit. The data lines up
with what I would expect to see after working in the Bronzeville area since 2007.
We see at the bottom of the housing crisis, cap rates were sky high!
Whoever had the courage (and the cash) to scoop up properties around 2010 and 2011
is looking like a regular Warren Buffett right about now.
We see that cap rates have flattened out. This means the market has stabilized.
Currently Bronzeville cap rates are hovering around 7 percent depending on the condition
of the property.
Well, that is all for now.
If you have any questions about cap rates in Chicago, I'm your man!
Until the next time,
Mark Killion, Real Estate Broker
Kale Realty - Chicago, IL
Cell 773-354-6693
Website: www.773property.com
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