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Updated over 2 years ago, 05/23/2022
Cap rate why high equals
So you read about cap rates especially for multifamily and apt. buildings and high cap brings higher risks lower price and vise versa. Well if you've got building for building everything is equal but are getting twice the NOI on one over the other which in turn would produce a larger cap rate wouldn't you want the higher cap?
36000/300000=12 cap
48000/300000=16 cap