Cap Rates

Comments(8)

• 
  KyleGatton28th October, 2003

  Quote:
  On 2003-10-28 09:11, maida7 wrote:
  For those that invest in income properties:
  
  What is your desired cap rate?
  As high as possible but it depends on the property type and location
  
  What are the average projected cap rates you are seeing for property availible in your area?
  For Tampa its typical to be between 9 and 18 for most types
  
  What are your actual cap rates for the property you manage?
  
  Roughly the same 9-18% after mortgage

• 
  GFous1st November, 2003

  Quote:
  On 2003-10-28 09:11, maida7 wrote:
  For those that invest in income properties:
  
  What is your desired cap rate?
  
  I look for properties with a cap rate above 8. I disbelieve most of them unless they are triple net..
  
  
  What are the average projected cap rates you are seeing for property availible in your area? For NNN properties as low as 7 3/4.
  
  
  What are your actual cap rates for the property you manage? The question does not really compute - since I have no NNN properties and have owned my other capped properties for over three years. I have one property, for example that I paid $1,050,000 for three years ago and it now has an aNOI of $163,000.
  
  [addsig]

• 
  cullepm324th December, 2003

  Maida7,
  
  What are the CAP rates for residential buildings (single family homes) in Asheville and its surrounding area?
  
  I remember reading a posting here that CAP rates in Asheville are low. Maybe around 6?
  
  Thanks,
  cullepm3

• 
  WheelerDealer24th December, 2003

  Gregg,
  
  How did you get into developing?
  [addsig]

• 
  Marcher25th December, 2003

  The average CAP rates for other people's areas won't offer much, in CA they can be 6-7%, in some other areas they can be over 10%.
  
  I look for properties with 8%+, but only offer a price that gives me 10%.

• 
  cullepm327th December, 2003

  Thanks Marcher. I am particularly interested in Asheville and the surrounding areas.

• 
  maida715th January, 2004

  Asheville has had alot of recent appreciattion and prices are very high for the southeast. Lots of people are moving to Ashville and the richer ones bring money to buy houses driving up the market. Renters are generaly lower level workers and thier wages are still very low. Rents like wages are still laging behind the increase in property values. Cap rate for residential property are 6% and lower. 6% is a like a older multi unit (duplex) in a bad neighborhood. A newer multi or single family in a nice part of town could yeild a cap rate closer to 4%
  
  How does that compare with your neck of the woods?

• 
  elissnurse15th January, 2004

  1980-2000 multi family in Tampa & Orlando is trading for around 7 cap on in place NOI. Southeast Florida I have seen Cap Rates as low as 6% on newer products. As long as interest rates stay low and the rental market remains soft, developers will continue to pay low Caps on the ability to convert MF properties to Condos