Best places to look for 5+ unit rental properties

[Kyle Brown]

I am looking to upscale on my duplex, to a 5+ unit complex, and am wondering where the best places to look are?  How important is cap rate when buying commercial properties?

[Brian Garrett]

The best place to find commercial multifamily is through brokers who specialize in this asset class.

Cap rate is important as it's an overall reflection of your return but it's more important on stabilized deals.

A lower cap rate can actually be a good thing on value add deals since it ultimately increases the value more.

Of course you still want to buy at the going cap rate for the market at least and not overpay to force a deal.