All Forum Posts by: Trent Barga

@Nick B. thanks Nick! Yeah I keep running numbers different ways. Priced well over what it should be - Their current asking price a lender told me I'd need 50% equity unless I can get it below $3 million

@Kim Meredith Hampton thanks Kim! appreciate the info. The NOI is pretty good but that is without mangement fees or pulling $$ out for cap ex

@Barry Ruby thanks! I'm just considering all the metrics. The Cost per door in our area is high for 2/1 and 1/1 around $108k per door. This deal is in my hometown that is a smaller town not in a bigger city so just weighing all criteria.

Have a deal that works on the DCR between 1.2+ but the cost per door is too high.

What do you give the most weight to?

@Adam Lacey Yeah I've noticed the competitive market place. I guess an investment is an investment but makes me wonder if the inflation and everything will come back to bite them, or we see a large increase in rent, etc. World is too crazy to have an idea what's going to happen.

@Brian Pownall thanks. Not well versed in large MF so thanks for the info

@Arn Cenedella

Thanks Arn they were built in the 1978-80s so that would make sense. Thanks!

I'm looking into a 36 unit MF (2/1) that the listing agent has labeled as a C class property but with a 4.77 Cap Rate. I own 3 SFH rentals and I'm a local agent. The MF is in the town I live so I'm familiar with it. Smaller town but the unit have been well maintained so deferred maintenance there. 25 of the 36 units are below market rent. Most of the units could use updating but are not horrible. No room for value add.NOI is around $180k

Typically a C Class property would be a higher cap rate like 6%+. Is this just the case of the agent labeling it the wrong class or is the cap rate off?