Multifamily Cap Rate in Different Cities


#122

Lazy seller…Why dont they raise the rents to market. .Limited buyer pool has the $2.9m cash…A lot more have the $1.6m


#123

Cash buyer can get a hefty discount then.


#124

I will offer $1.8m


#125

How about 50% cash, 50% seller financing for 3 years? After you raise rent you can refi seller’s portion with the bank.

Which bank is good for commercial loans? Never did one before. Are there commercial loan brokers like residential?


#126

Based on actual rents value is 203/323x $4.7m = $3m


#127

Someone had posted a Boulder Creek multifamily in one of these threads (@Jil), I cannot find it. It was listed for ~2.3M… closed a few days ago for 1.85M. Annual gross 225k.

What I did not mention back then was that I had an offer accepted on that same property for 1.9M around 2015 (off MLS)… and I backed out after the site visit. All buildings in great condition, owner is a plumber / GC … I am not afraid of the IRS, but the County Planning Department…

Anyway, here’s another one. Less fantastic GRM, less questionable extra living space

73k income for 788k… SFR plus 2 units

I don’t think it can sell over asking… 800k is a lot for that street


#128

What a dump…The stock whale photos help distract from reality


#129

73k income for a price of 788k, what the seller wants to sell? He bought it at 510k in 2008, should be very good rental income. I would drive by the property next time I visit Capitola.

However the high rent might be due to furnished back unit.

In a college town like Berkeley and Santa Cruz, how much rent premium can you get for furnished rental? Is it worth renting furnished to most likely students for 9 months and have a 3 month vacancy vs renting 12 months unfurnished to regular people?


#130

The listing mentions AirBnb for the 3 summer months… $100 to $300 a night per unit?


#131

73k gross or net?


#132

Students are the worst tenants. …Slobs with no responsibility. …High maintenance costs


#133

Some1 already posted this link… but 1more time about students: https://m.youtube.com/watch?v=Q0I0fDGJfPY


#134

Another Duplex, location seems to be good, but realistic rents are more than what is stated here.


#135

The cap rate seems to be better/high here

Gross Rent Multiplier: 9.93 (lowest ever I have seen bay area).

Does this realistically better?


#136

I know this property. I had written an offer on it too… in September 2014. My offer was 625k and the seller insisted on 675k. It was listed with a San Jose broker back then. We could not come to an agreement and I ended up buying a larger property instead.

Now it is listed for 765k. He probably raised the rents since 2014. The units and premises are in good shape. I see it every month as I have a 6unit property just one block behind this one.

Unlike the other BC property that was mentioned here before, this one is pretty much 100% legal. I did a thorough evaluation of the sqft of the main house (visited county offices, etc) and it came out clean.

I could obviously have paid the 675 back then, but I also wanted to move towards larger properties. I liked it because it was so close to the other one.


#137


#138

With such nice reference, I just scanned again to review, it is sold already (BTW: This is listed today)

Is this true sale, on the same day?

If such sale is happening, this market is too crazier than 2006-7 period.

Similar to this, I have seen MSJ home went on pending same day. At least this is fine with pending, but sold in same day I am seeing this today only !!


#139

It was a pocket listing. She put it on the MLS for comp purposes only. Look at the agency…

Believe me, this property does not sell quickly.

When I wrote the offer in 2014, the listing had just expired (90 days no offer).

By the way… I paid 640k for my 6 units one block away… corner of Mountain St and Highway 9. Though… that was in 2012. It felt weird offering 625k for 3 units in 2014.


#140

This duplex just closed at full list price of 163K. Pretty quick close also. 11 cap is pretty awesome return. I noticed in the updated MLS photo they cropped out the convertible part of the Mercedes? :smile: Maybe they don’t want HUD to notice the tenants’ extravagant lifestyle?


#141

Between Tampa and Vallejo, where do you choose to invest for long term?