cap rate for multi family

[Jodi Rhoades]

I have been looking at multifamily units and wanted to know what is a good cap rate for multifamily units and what are some things I need to be careful about when I am analyzing these types of  properties.  

[Russell Brazil]

There is no such thing as a good or a bad cap rate. A cap rate is merely a reflection of the underlying risk of the asset and the market.  Higher class properties, higher demand locations will have lower cap rates to reflect the lower risk associated with the asset and market. Lower class properties in weak demand locations will in turn have higher cap rates to reflect that market and assets higher risk.