Cap Rate for a 77 unit apartment complex in Griffin GA?

In Buying Property - Asked by Philip M. - Mar 29, 2010
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Answer(s)

David K.
Broker/Agent
Weatherford, TX

Gross income less expenses give you net operating income
divide the operating income by the rate of return you seek and
the answer will give you the maximum amount you can pay to get
the return you seek.

Mar 30, 2010
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Mike O.
Owner/Investor
Fredericksburg, VA

If you are asking what a good cap rate is for the area, it depends on a lot of things: the area, condition, demand, competition, the local market, etc. Generally speaking, a minimum cap rate for apartment buildings should be above 7%. If you're in a depressed market, you might see cap rates around 10% due to a market condition called "cap rate compression."

Mar 31, 2010
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Dennis R.
Owner/Investor
newfane, NY

to determine the cap rate you would divide the NOI by the price of the property and that will give you your cap rate

Apr 1, 2010
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