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Starting Out
HomeForumsStarting OutDoes 10% Cap rate include rehab & closing costs
Dinesh T.'s profile image
Dinesh T.'s profile image
Dinesh T.
  • Realtor
  • from Middlebury, Connecticut
  • Member since Sep 12, 2015
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Dinesh T.'s profile image
Dinesh T.'s profile image
Dinesh T.
  • Realtor
  • from Middlebury, Connecticut
  • Member since Sep 12, 2015
Connect
Dinesh T.
  • Realtor
  • Middlebury, CT
6
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47
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Starting Out

Does 10% Cap rate include rehab & closing costs

Dinesh T.
  • Realtor
  • Middlebury, CT
Posted Oct 19 2015, 04:39

My realtor called into question my calculation when I stated that the CAP rate is low on a specific property she was showing. I had included rehab & closing costs. I have heard in podcasts about targeting 10% CAP rate. Is the norm not to include rehab, closing or any other costs of acquisition?

-Dinesh.

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