California Cap Rates in your areas

9 Replies

Hello BP,

What cap rates are you guys/gals seeing in your California areas these days?

With or without management makes a difference as does SFR vs MFR and location for the LA area in SFR if you are willing to do rehab and self manage you can get 4.5% the farther east you go and/ or the fewer properties you want the higher you can push that.

@Jo-Ann Lapin MFR's in your area with management.

@Aaron Klatt MFR's with management.

For clarification.

Just finished appraisals of a 16 unit and a 24 unit building in Glendale, CA and I'm seeing cap rates between 3.2-3.7% 

It really depends on what type of inventory and even what type of management, are you going to buy a property that rents for $3,000 per month and pay someone $99 a month to manage or are you going to go with the 8% management?

In Metropolitan SF Bay Area people are less concerned with cap rate (2.5-4.5%).  It is cash flow that matters as all appreciate 12-20% each year for sometime now. Doubled if not tripled since 2012. If I find them a 5%+ cap investment they do not jump at the opportunity I get other to buy.  98% are sold over asked or past prices. 

Go to IRR.com and find the area you're interested there for the cap rates @Neems Y. Much quicker to get the answer you want that way. 

Thanks for all of your responses. 

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