Kansas City cap rates

[Jason Malabute]

I have talked to many brokers in the KC market and they all said that B properties in B neighborhoods in KC are trading at a 4-6% cap. However, I have a question for multi family investors that go direct to owner that buy 6 units or bigger. When you are buying in B neighborhoods like South KC, Excelsior Springs, Belton, kc, downtown, Grandview, Independence (the B part), Lee Summit , Blue Springs, Overland Park, and Shawnee Mission are you using a 6% cap in your underwriting or are you using a more conservative 7%?