It really depends on the financial strength of the tenant and the type of businsess that occupies the property. Is this a single-user unique property that cannot be used for something else? I have not seen 30% but I have seen 20% cap rates.
An answer to Thomas,No, this is a mutiplex residential in lower income area. i.e. $45-50K/house hold income.It ranges from duplex to 6 plexes. Some properties have Section 8 tenants only.In deciding, what factors do you consider?
Deferred maintenance.Gregory Garver - Commercial Real Estate BrokerBroker License# 01716531(415)email@example.com
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