What CAP rate do you seek? What do you call a "deal"?

[Derek Lamonde]

Historically, I won't consider anything in NJ below a 10% CAP which is becoming next to impossible given the taxes. I've considered lowering expectations a bit or working with a wholesaler, but finding a good one is proving as elusive as finding a 10% CAP. My next move is to start looking next door at PA, but the tend to yield lower rents so most of what I've found is a wash. I'd like to hear from folks that search out multi-family investments and what their criteria is for a "deal". Especially if you buy properties in NJ.

[Ned Carey]

Well for what type of property and what class of property are you referring to? An A class property at 9% is a steal. A D class property at 10% may not be a very good deal many places. 

I don't agree with him on many Issues but @Account Closed will certainly give you a different perspective on this question.

Also cap rate is only one criteria. Do you anticipate population or economic growth? What kind of terns can you get and what would your Debt Service Coverage Ratio be? Is there an opportunity to re-position the property?