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Property: Boise 5-unit priced at $850,000 ($170,000 per door) with a 5.43% cap…

2026-08-01 · 16:51 UTC ·@CoFoundersNik ·0 min read

Brief

The post argues a Boise 5-unit at $850K (5.43% cap) looks unattractive versus a ~5% 10-year Treasury because typical debt at 6.6–7% makes the deal cash-negative. The author highlights ongoing ownership burdens—property management, maintenance, turnover—and notes capital illiquidity, asking what justification exists to buy over treasuries.

Why it matters

Property: Boise 5-unit priced at $850,000 ($170,000 per door) with a 5.43% cap rate versus a 10-year Treasury yielding ~5% (published 2026-08-01).

Key details

  • Typical financing at 6.6–7% would produce negative cash flow relative to the 5.43% cap rate, meaning the investor pays more interest than net operating income covers.
  • Owner costs and frictions remain despite low cash yield: active management, repairs (e.g., toilets), tenant turnover, and capital being illiquid/tied up.
Source evidence

Why would you buy this over treasuries right now?

  • Boise 5-unit
  • $850k ($170k/door)
  • 5.43% cap rate
  • 10-year: ~5%

After financing at 6.6–7%, you’re negative and you STILL get to:
• Manage people
• Fix toilets
• Deal with turnover
• Tie up your money

What am I missing?