New York City

[Charles Kagahastian]

with cap rates on l o o p n e t . c o m between 5 and 7 how is it possible for anyone to make any profits i've currently been playing with numbers from a couple of properties and it seems like their prices always end up with negative cashflow with the standard of 20% down and a 7% interest rate. should i completely negate cap rates like MikeOH says? should i just propose a price that would allow for cash flow? or is it that these properties are just bad deals. also some of the properties i've been researching are mostly vacant and the agent will use this info as a way to sell a condo conversion. are mostly vacant properties not good for rental properties? is the short term profit just not there?

I just started playing with numbers after reading frank ginelli's book "what every real estate investor needs to know about cash flow and other calculations" and i guess you can say i am overwhelmed. The examples in the book are just that examples and they work because of that. when i plug in these real numbers i just can't seem to find any good properties when cap rates are this low. is new york commercial dead or stagnant cause from what i've read places like astoria and brooklyn as well as the lower east side have a huge market and low vacancies. i need some help please