Boise area real estate and rental management blog
There were only 5 four plexes sold within Ada County (Boise, Meridian, Eagle, Star, and Kuna) in October. Two were in Meridian and the remaining three were in Boise. The average sold price was $660,000, with a high of $807,500. Cap rates continue to trend downward as values increase faster than rents. Although Boise rents continue to rise, they are doing so at a much more moderate rate. Due to the low inventory, we believe cap rates will continue to trend downward.
The average Gross Rent Multiplier (GRM) for Ada County four plexes continues to climb at a steady rate. The average GRM in October was 167 with a low of 152 and a high of 174.
At what point will investors find the returns too slim and what effects will that have here in Boise? Will there be a big push to increase rents to make the investments pencil, or will investors continue settle for less cash flow?
Please contact us to receive the full report and graplhs.
Tony A Drost, Associate Broker, Swope Investment Properties
208-794-6424, Tony@BoiseInvestmentProperties.net
Stacy A McBain, Associate, Swope Investment Properties
208-921-0630, Stacy@inflowpr.com