I have my eye on a property in Dutchess County NY. I wanted to know the average cap rate for the area, would that be a question I could ask the real estate agent I am working with? Or is what I just said completely unintelligent... Compared to all my other research, comparing Cap rates is the one area which I feel I am lacking.
@Cyprian Sadlon It is certainly NOT an "unintelligent" question. It is a very tricky one - I have found that the best resource is if you #1 have a Real Estate Mentor that has YOUR best interest at heart - -- So with that, I would certainly not rely on a Selling Agents opinion, as they are usually working for the Seller. If you don't have a RE Mentor the next best thing is to check with a lender. It is always good to start a relationship with a lender / Mortgage Broker prior to identifying a property as they can give you some great guidance on many of your questions and help you solidify your plan of action.
I hope you found this info helpful!!
That is really helpful thank you @Bonnie Staples
@Cyprian Sadlon - Also if you have an Agent/Mentor that has access to Co-Star and are willing to share historical Cap Rates for that submarket - that can be extremely helpful as well.
Best to you!!
can you share what town the property is in and what type of property it is?
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