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Patrick Sears
  • Midlothian, VA
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Hotel cap rates

Patrick Sears
  • Midlothian, VA
Posted Sep 19 2016, 14:57

Hello,

I am becoming interested in possibly investing in hotels/motels in the future.  I have been reading that the mid to higher-level properties are valued on cap rates just like apartments.  I have seen a few on LoopNet that have caps in the 7 range. 

My question is, why would I pay that kind of a valuation for a full-time business that requires a ton of daily work when I can get an apartment for about the same rate without the full-time business headaches?

Thanks!

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