90% cap rate even possible?

[Jesse Ramirez]

Found a 20 unit multi family complex for sale. Broker claims the cap rate is at 90%. Hmmm.......sounds fishy

[Jon Holdman]

Looks like 7.5% to me.

Payment on $400K at 7% for 30 years is $32K. So, you're in the hole $2K a year.

Now, if you mean the payment is included in the "expenses" of $45K, then the claimed expenses are only $15K vs. $75K in rent. No way.