Realistic cap rate for multi family

[Eli Stein]

Simple question. Is it reasonable (or realistic) to want a 10 cap when purchasing a multi family building? Why can't I find those anymore?

[Ruth Bayang]

It's very much dependent on your market. Generally, the east and west coasts (where housing is pricey), expect a lower cap rate. In Seattle, 5-6 is as good as it gets. For a 10 cap, you'll need to look toward the middle of the country. Not saying it's impossible in NJ. A seller would have to be highly motivated. Or it's a not so great property.