Desirable Cap Rate

[Jazmine Menders]

Hi!
I am a realtor that specializes in investment properties. 

One crucial metric in investing that I often utilize is the capitalization rate, or cap rate. It helps me explain to investors the potential return on investment for properties they may see potential in. My general rule of thumb is to invest in properties that have a minimum cap rate of 8%- 12%. Although I’ve seen investors  make deals on properties with a 6% cap rate.

I’m curious to know, what's your take on cap rates? How do you determine if a cap rate is attractive for an investment property?

Thanks!