Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 10 years ago,

User Stats

12
Posts
3
Votes
Kevin Patterson
  • Investor
  • Franklin, TN
3
Votes |
12
Posts

Question(s) regarding Cap rate

Kevin Patterson
  • Investor
  • Franklin, TN
Posted

I'm still new to the real estate investing game and in my studies I have recently come across cap rates. While I understand the basic idea of a cap rate and how it is calculated, I'm a little confused on how to read them. For example:

1) Are cap rates utilized to analyze SFR, or just for multifamily/commercial?

2) Do you always look for a higher cap rate in a deal, or is it sometimes advantageous to seek out properties with lower cap rates?

I've been doing some digging, but can't seem to find a consensus. Any clarification would be greatly appreciated.

Loading replies...