All Forum Posts by: Luke King

Based on my original question in this thread, I've collected some more data to try and get a sense of the cap rates on multi-family properties in the West Toledo, Maumee & Sylvania.

I am surprised to see nothing above the 10% cap rate....and in fact very little over 9%. The average for the 27 properties listed here is about 6.6%. Does that surprise anyone here? What do you look for in a cap rate for multi-family properties in these areas?

Property ID	Capitalization Rate	Cash on Cash Return (Traditional Financing)	Annual Cash Flow	GRM	1% Rule
Property 1 - Sold	9.97%	28%	$ 9,204	66.6	1.50%
Property 2	9.01%	24%	$ 5,640	66.6	1.50%
Property 3	7.96%	18%	$ 7,176	75.3	1.33%
Property 4	7.89%	19%	$ 3,528	76.0	1.32%
Property 5	7.81%	18%	$ 3,660	76.8	1.30%
Property 6	7.77%	17%	$ 2,952	77.2	1.30%
Property 7	7.58%	17%	$ 3,360	79.1	1.26%
Property 8	7.51%	17%	$ 3,360	79.9	1.25%
Property 9	7.51%	17%	$ 3,360	79.9	1.25%
Property 10	7.17%	14%	$ 2,586	83.6	1.20%
Property 11	6.75%	12%	$ 4,404	88.9	1.13%
Property 12	6.52%	12%	$ 2,688	92.0	1.09%
Property 13	6.51%	12%	$ 3,000	92.1	1.09%
Property 14	6.43%	11%	$ 2,388	93.3	1.07%
Property 15	6.36%	10%	$ 2,376	94.3	1.06%
Property 16	6.23%	10%	$ 2,748	96.4	1.04%
Property 17	6.13%	9%	$ 2,337	57.1	1.75%
Property 18	6.00%	9%	$ 3,408	100.0	1.00%
Property 19	5.87%	8%	$ 1,998	57.8	1.73%
Property 20	5.63%	7%	$ 7,326	106.5	0.94%
Property 21	5.60%	3%	$ 840	107.1	0.93%
Property 22	5.20%	5%	$ 2,700	115.3	0.87%
Property 23	5.13%	4%	$ 1,356	117.1	0.85%
Property 24	5.09%	4%	$ 1,308	117.9	0.85%
Property 25	5.08%	5%	$ 1,200	118.1	0.85%
Property 26	4.97%	3%	$ 1,128	120.7	0.83%
Property 27	4.62%	2%	$ 600	129.9	0.77%

1 Vote

Toledo, Ohio

Thanks Andrew. I'm still collecting the expense figures from the seller so for now I'm just using the 50% rule. Income = $1250/month ($15,000 annual). Expenses = $625/month ($7500 annual). I guess I'm just looking for some ballpark guidance at this point to try and estimate an offer price.

0 Votes

Toledo, Ohio

Hi all, I thought I'd introduce myself since I'm starting to post on the Toledo forum. I'm a former Toledoan and will be moving back there in 2017. I've been living overseas the past 12 years or so working in the non-profit sector dealing with the wars and disasters in Haiti, Iraq and the Democratic Republic of Congo.

My wife and I are planning on househacking for the first year or two once we're back to Toledo. This is step one in a longer-term plan to invest in property in northwest Ohio. If anyone knows of any good duplex, triplex or quads in the Toledo, Sylvania, Perrysburg, Holland or Maumee areas, please let me know!

I hope to meet many of you next year once I'm back in the Glass City. Until then, all the best. Luke

1 Vote

Toledo, Ohio

Hi All, I'm looking at a duplex in the 43613 (west toledo) area code. The seller may finance the deal so I'm putting together a bid. I don't see many comps in the area that have sold recently so I'm struggling to figure out what a normal cap rate might be for a duplex in that area. Can anyone help with their thoughts on what a reasonable cap rate might be for a duplex in West Toledo?

0 Votes

Toledo, Ohio

All Forum Posts by: Luke King

Luke King has started 3 posts and replied 14 times.

Post: Cap Rate on a Duplex in Toledo OH?

Post: Cap Rate on a Duplex in Toledo OH?

Post: Introduction & Interest in Multi-family for Househacking

Post: Cap Rate on a Duplex in Toledo OH?