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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Conan who wrote (6432)	10/30/2002 1:08:53 AM
From: Elroy Jetson	Respond to of 306849

Most pros consider 15% the minimum cap rate for an investor to shoot for if you want to make money regardless of short term real estate trends. It is hard to find cap rates above 10% in markets like California. The Cap Rate changes all the time. Currently REITs are acquiring properties at an 8% or lower Cap Rate. Most people panicked into buying duplexes are buying at Cap Rates resembling 2% or less. In normal times buyers will pay twice the Cap Rate for newer properties in nice areas than older buildings with more problematic tenants. A property with an alleged 8.25% Cap Rate in today's market should be viewed with suspicion. There are likely negatives to the property you are not aware of.