28: Inflation Falls, Inventory Drops, and Why is Multifamily Such a Mess?
On The Market
00:00
Is the Ex Cap Way Too Low for This Area?
The expense ratio needs to be around forty, three to 50 %. On a older building, theres was under 40%. So again, just not anticipating that old stuff breaks rate, and then a refy rate. Was this an inexperienced operator? No. The ex cap way too low. This is the price you're going to sell the property for based on on the cap rates of the area. Way, wa way too low for this vintage. And this area where, ah, where the ga, vacancy they had at two %, and the area was eight %. But when you're in an area that has eight % vacancy, you're swimming upstream.
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