The answer depends on so many parameters. For instance in CA - where high value properties are - there are cities where you could find 10% cap for apartments, whereas in Silicon Valley (San Jose area) you should be happy with 7-8%. AND it also depends on you, as the investor, as to your cap rate preferences.
One general rule though - if you have the cash, you're king - so go ahead make an offer with a high cap rate for yourself!
Jun 26, 2009