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Updated almost 4 years ago on . Most recent reply

David Denelsbeck's profile image
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David Denelsbeck
  • from Gillette WY
  • Member since Mar 19, 2019
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David Denelsbeck's profile image
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David Denelsbeck
  • from Gillette WY
  • Member since Mar 19, 2019
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David Denelsbeck
  • Gillette WY
1
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Starting Out

Should I worry about Cap Rate?

David Denelsbeck
  • Gillette WY
Posted

I am just starting my real estate investment journey. I am attracted to small multi-family investments with the intention of expanding into apartments. Starting off, should I be concerned about Cap Rates? How important is cap rate to small multifamily investment and why is it important? I am not fully understanding this concept. Thank you for any replies. 

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Peter M.'s profile image
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Peter M.
  • Rental Property Investor
  • from DFW, TX
  • Member since Apr 2, 2013
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Peter M.
  • Rental Property Investor
  • from DFW, TX
  • Member since Apr 2, 2013
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Peter M.
  • Rental Property Investor
  • DFW, TX
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Peter M.
  • Rental Property Investor
  • DFW, TX
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@David Denelsbeck The short answer is no. You should be more concerned with cash flow for 1-4 family.

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