|Current example of the pressure for yield on the RE market. |
This is a property I was just at for a claim--severe vandalism for pipe value--
The broker and I were talking about the market and he noted that this multifamily was about to close for a bit over $700,000 in cash and that he had received 63 offers upon listing it. Keep in mind that it will need no less than $150-200k in gut renovation before being rentable for an estimated $5,000-$5,500 monthly rent roll. All in all the buyer should yield around 6-7% on the investment without consideration for depreciation or appreciation.
This sort of property is very hot around the NYC metro region these days.