All Forum Posts by: Arun Iyengar
Arun Iyengar has started 8 posts and replied 52 times.
Post: What Cap Rates would make the property attractive?
Arun IyengarPosted
- Investor
- San Jose, CA
- Posts 53
- Votes 28
Originally posted by @Russell Brazil:
4% cap rate in the DC area.
Do you think the cap rates will go up as the interest rates are increased?
Post: What Cap Rates would make the property attractive?
Arun IyengarPosted
- Investor
- San Jose, CA
- Posts 53
- Votes 28
Cap Rates and GRM (Gross Rent Multiple) set the stage for pricing a property. As interest rates decline, Cap Rates tend to go down and GRM tends to go up., and the pricing of the Multi-family apartment reflects this. I live in the pricey San Francisco Bay Area and find Cap Rates to be well below 5% and GRM to be above 15. Question for people buying in other areas of the country - what constitutes a good Cap Rate and GRM for you to buy?