Updated over 5 years ago on . Most recent reply
Rental Property Return Rate
As a general Discussion, What do you consider to be a realistic expectation for Cap Rate in the area? Or if you use a different ROI calculation what is it and what rate do you expect to get? I see a lot of 6-7% out there that seems low to me.
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Michael Haas
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Michael Haas
#5 New Member Introductions Contributor
Agent
Pro Member
#5 New Member Introductions Contributor
- Real Estate Agent
- 🌧️ Seattle Investor & HouseHacker | 🤑 Helped 100+ Clients HouseHack | 🏘️ Own 17 Rentals & 5 Airbnbs | 🏗️ Built 5 DADU's
As crazy as it sounds, 6-7% CAP in the greater puget sound is actually quite good. Seattle averages in the low 5%s and tacoma in the low 6%s or high 5%s.
That's the current CAP of course, so for those properties (or any property) most investors would be looking to add value and increase returns after purchasing.
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