Brian Thornt…, Real Estate Pro in New York, NY

Is there an active market relating to apartment buildings ranging from 4 to 20 units/dwellings?

Asked by Brian Thornton, New York, NY Tue Sep 11, 2012

What is a ball park gross multiplier that these properties sell for? Thanks in advance for any responses.

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Answers

4
Robin,

You are absolutely correct with your cap rate quote. Currently there aren't TONS of these types of properties, but there are some. However, if you are in the market to purchase one, be prepared to pay cash and make sure you have an agent that understands cap rates and how to calculate ROI.
0 votes Thank Flag Link Mon Sep 17, 2012
i am hearing the cap rates of 4%-5% are average in honolulu.
0 votes Thank Flag Link Tue Sep 11, 2012
Hi Brian,

You will find that rents tend to be lower in relation to sales prices in Honolulu. That is, it takes longer to recoup your investment in the multiunit market. However, you will also find that our inventory is extremely low now, so the demand for all properties has built up over the last few years.
0 votes Thank Flag Link Tue Sep 11, 2012
most are in our mls...and marketed in loopnet as well.
0 votes Thank Flag Link Tue Sep 11, 2012
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