What's a Good Cap Rate?

3 Replies

Hey, guys!


There is an awful lot of misconceptions about the concept of Capitalization Rate, what it is, and how to properly use it. I've written about it here and everywhere many a time, but here's another try. I just published an article on my blog titled - What Is a Good Cap Rate

 CLICK HERE and learn.

Feel free to ask, if you have follow-up questions!

I wish I could put this line from your blog in an autoemail to people who tell me they want a a multifamily or commercial property with a 10% cap rate. We are in Washington DC, you arent touching that number here.

"First – I already told you that Cap Rate is a metric that describes the marketplace. As such, you don’t really have a say in what is good or bad Cap Rate – it is what it is in each specific marketplace."

Originally posted by @Russell Brazil :

I wish I could put this line from your blog in an autoemail to people who tell me they want a a multifamily or commercial property with a 10% cap rate. We are in Washington DC, you arent touching that number here.

"First – I already told you that Cap Rate is a metric that describes the marketplace. As such, you don’t really have a say in what is good or bad Cap Rate – it is what it is in each specific marketplace."

 Feel free to use it, just give credit. It's so silly how many people misunderstand the concept. Not only are you not going to touch it in DC, but you shouldn't want or need to :)

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