Cap rate question

[Jose Genao]

Is ir generally better to have a higher cap rate or lower?

[Ned Carey]

High cap rate means high income and a low purchase price. A low cap rate means low income and a high purchase price. For a given property the higher the cap rate the better.

So if you are buying, a High cap rate is better

Or is it?
In general better properties, or properties that would be considered safer investments will have lower cap rates. The riskier properties in poor neighborhoods will have high cap rates.

Good luck - Ned