Determining if your Cap Rate is good or bad

[Timothy Christian Jr]

I determined the cap rate for this duplex in Greenwood, Indiana, earlier today, and it was a 7 cap in a B class neighborhood. How can I calculate my market cap rate (CR) with this data? How can I determine if a deal is excellent after I know my markets' (CR) and my rental property's (CR), based on whether my (CR) is lower or greater than the typical markets?

[Russell Brazil]

There is no such thing as a good or bad cap rate. A cap rate is a reflection of the markets view of risk in the asset and market. The higher the cap rate, the higher the risk. The lower the cap rate, the lower the risk. Risk is neither good or bad.