acceptable cap rate

[Justin B.]

Whats an acceptable cap rate for buying multifamily (2-4) with cash?

Houses range in 30-45k, and rent is 550-650 per unit (2bd).

Also how easy is it for someone to get a loan on a property that is worth less than 50k? Can you get a FHA on less than 50k?

[Steven J.]

Jeff is pretty correct on that. Cap rate is used for larger units. If you're able to get a 30k house with $600 rent you're hitting the 2% rule, a desirable number to have. Most people can only fulfill the 1% rule (incoming rent is 1% of purchase price). 2% used to be the number but with todays more competitive market 1% is generally the number people aim for.