#85 The Highest Cap Rate in Long Beach Is a Fully Renovated Building (That Almost Never Happens)

Send us Fan MailInvestors chase the highest cap rate. Investors also want the building that doesn't need work. You almost never get both in the same deal, because renovated product trades at a compressed cap rate and the high-cap deals are the ones that need a contractor on speed dial.This one breaks that rule.Cody and I are walking through our newest listing at 5529 Dairy Ave in North Long Beach. It's 10 units, taken down to the studs and rebuilt: new roof, new plumbing, new electrical, new windows, tankless water heaters, high-end finishes in every unit. Asking price is $3.35M, which prices it at a 10.87 gross rent multiplier and a 7% cap rate on current rents.For context, the Long Beach average over the last 12 months on 5+ unit properties is an 11 GRM and a 6.4% cap. This building beats the market on both, and normally the only properties that beat the market are the ones that still need a lot of work.Juan Huizar 📞 (562) 307-0838https://sageregroup.com/team/juan-huizar/DRE #01417642Cody Charnell📞 (562) 896-3851https://sageregroup.com/team/cody-charnell/DRE #01950585Juan is a Licensed California Real Estate Broker that has acquired his Certified Commercial Investment Member (CCIM) designation and a Real Estate Investor who is dedicated to helping people build wealth and financial independence through real estate investing. Website: www.SageREGroup.comPhone: 562-307-0838Instagram: https://www.instagram.com/multifamilylongbeach/Facebook: https://www.facebook.com/SageRegroup/LinkedIn: https://www.linkedin.com/in/juanhuizar-sagerealestate/YouTube: www.youtube.com/sagerealestateBRE 01417642​​​