I wanted to add that if you want to improve your cap rate, you must purchase at less than $279,000. For example if you receive a discount of $10,000, with a price of $269,000, your cap rate will improve to a 9.08%.
For the SoCal area, this is likely a fine cap rate for the property your are considering. (Knowing nothing about the location or the market rental rates, but based simply on the fact that it is a lesser priced property, which often has lower cap rates if a residential income producing property).
Again.... Onward and Upward!
Oct 30, 2012