Des Moines Iowa Cap Rate?

[Austin Davis]

Does anybody know the approximate Cap Rate in Des Moines for a 20-40 unit apartment building?

[Chase Keller]

Hello @Austin Davis,

That's certainly a difficult question to answer without more info I know the Des Moines market pretty well. There are a lot of factors that go into determining what a cap rate should be. Since the purpose of the cap rate is to determine how to compare similar properties to each other based on their income, you have to determine what a similar property looks like. 

@Harley Gorter is about right,, I'm buying in the 7-9 range, but that range will make a huge difference in the price. 

Feel free to give me a call or email and I'll see if I can give you a better answer.