Justifying Low Cap Rates in Hot Areas of Florida
Hi BP community,
I am looking to buy multi familys on the West Coast of Florida. I am having trouble because it seems unlikely I can find something meeting the standard BP numbers of 1% rent and 10-12% cap (Turner's recommended cap, I believe). The area I'm looking in is hot with high density and little land left to develop. Is it justifiable to buy with a 6-8% cap in these areas?