Caps
anyone in california getting a cap rate over 5%? I have been looking at properties on the web and havent seen anything over 5. Are a lot of investors buyng on speculation? Are they hoping to just break even and make up for it on the sale price? Here in NC i have seen caps in the 7-8 range for multifamilies.
California is a tapped market and as they sell of at incredibly low cap rates they go to new markets and drive down the cap rates there. Arizona is a prime example as well as Nevada.
In answer to your question, yes - they are buying in California on spec.