Where are the 10% CAP rate markets?
Since I can't get any more conventional loans, I am trying to venture in multi family investing to add to my monthly cash-flow. I am looking to get around a 10% CAP or better however it seems that most people are very happy with the 3-4% CAP rate they get here in SF Bay-area.
Any suggestions on markets/metro areas where I can get a 10%+ CAP rate with an investment of around $2M or less?
I am also on the lookout for brokers and lenders for that market so if you are willing to work with a newbie commercial investor, do reach out!
thanks in advance!
Keyur
Most Popular Reply
Come on guys! 10% cap rates are easy to find. Just listen for the gunshots.
I just had a 210 unit "class C+" off-market deal sent to me today. Google search reveals three homicides on-property in the last three years (and those are just the three that I found easily). Two buildings are burned and not from the same fire. One was arson. Class C+, huh? More like D-.
If you want 10 cap, put on your seat belt because because you're about to embark upon a wild ride. By the way, put on some Kevlar too.