I cannot help you until you know what the property is worth or what you are paying for it. Basically a good CAP to stick to is 10. But it all depends on how good the deal is. A lower CAP is acceptable if it cash flows nicely or if you don't plan on holding, but flipping. We get 11-14 on our properties, but we've had them 12 years.
Since we're on the topic, I'd like some assistance in understanding how to calculate cap rates. Is there somewhere I can go to on this website that explains it ... or can you?
I cannot help you until you know what the property is worth or what you are paying for it. Basically a good CAP to stick to is 10. But it all depends on how good the deal is. A lower CAP is acceptable if it cash flows nicely or if you don't plan on holding, but flipping. We get 11-14 on our properties, but we've had them 12 years.
You mentioned "If it cash flows nicely" - what in your mind is "nicely"?
Thanks
MNInvestor
Since we're on the topic, I'd like some assistance in understanding how to calculate cap rates. Is there somewhere I can go to on this website that explains it ... or can you?