What was that cap rate rule you told me once, for apartment buildings? Was it, “Buy in the 14’s, sell in the 9’s?” I can’t remember.
Thanks,
Adam.
AK,
What you stated is a good goal to shoot for, but I wouldn’t use it as a litmus test. There are so many other factors to consider.
If I recall correctly, the gist of the conversation was that buying rundown complexes, fixing, raising rents to market, and selling works well when done correctly. And I think we discussed the possiblity of rezoning for condominiums or separate parcels for individual sell-off.
The point being at the time was that it’s difficult to find good numbers unless you plan on adding value.
In case it’s been a while…
http://www.texasrealestateclub.com/articles.html#commercial