Cap rates are dependent on the quality of the location. Highly desirable, quality locations will always return low cap rates. Whereas, low quality properties in less desirable areas will return high cap rates. 3% is not terrible for an exceptionally desirable property but 6% is awfully low for a property in a sketchy high crime neighborhood. If your property is not in a highly desirable area, I would sell with that return on current value.
Statistics: Posted by runswithscissors — Tue Sep 17, 2024 1:23 am — Replies 9 — Views 686