Any tips for finding apartment buildings under value?
I've historically bought houses under value that needed significant work.  Short sales, foreclosures, etc.  I usually target 12-15% cap rate after expenses.  I live in a region where 3 bed 2 bath homes sell for around $120k.


I'm interested in looking at apartment buildings in the $300-600k range, though I'm not opposed to more if it makes sense.  There's a fair number on Loopnet, all going at the average rates of 7-8% cap rate.  Obviously, to beat that, I'm going to need to do some work in finding off-market properties that need work.

But investor owners are different from homebuyers.  Does anyone have any tips on finding distressed landlords who might be motivated sellers?  Or any other tips on finding apartment buildings that might need work before they hit the general market?
[{"id": "cz5qpyo", "text": "Use Costar, its expensive, but worth it if you are able to generate deal flow", "replies": [{"id": "cz5zxpj", "text": "Any chance you can please explain more about this? I have Costar and never use it since their available listings are always inaccurate in my city..", "replies": [{"id": "cz6pbo9", "text": "If you are looking for \"off-market\" properties, why are you looking at live listings? CoStar's biggest strength is it's property owner database. First filter in the property metrics you are looking for \"price, psf, sf, year build, units, etc\" and then see what is available in the market you are looking in.\n\nThen start sorting through your results and see what has traded in the last 12 months. Where are cap rates? Have they  been trending up or down? CoStar has vacancy data but it's not always the most accurate. Start calling around for rent surveys. See what the market average is. This is how you'll be able to find properties that fit your investment criteria.\n\nAnd the biggest tool that CoStar gives, especially for brokers, is PROPERTY OWNERSHIP. Each CoStar entry shows who the true owner is and their contact info. It doesn't always have true ownership for larger scale properties but, especially for smaller properties....it does.\n\nAnd if you ever need financing....debt, equity, jv partner.....you will PM me as a thank you :-)", "replies": [{"id": "d0vpnbl", "text": "Cool info ", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cz63p66", "text": "Find them in your market and call the owners. There aren't any shortcuts. You just need to put the work in. Multi is very competitive right now, but it's still a good time to buy. You just need to be doing your own ground work. ", "replies": [], "depth": 1}]