Denver Cap Rates

[Steven Tawresey]

Hey Friends!

I've got a 4-plex in Denver. Cap rate is 11%. Reversionary Cap rate is 14%. Why don't I raise rents? Cause I have good tenants and they don't bother me. I know a lot of people won't understand this, but it works for me.

That being said, I'm looking at expanding into more properties. I know I won't be getting 11%, but does anyone have an estimate of expected Cap rates within 2 miles of Downtown Denver?

Cap rate = Annual Net Operating Income / Purchase Price

Thanks!