What Cap Rates do you go for in Philadelphia Apartments

[Nathan J.]

Hi all,

What are people seeing as cap rates in Philly (I assume 15% for maintenance, replacements reserves, and vacancies). For apartments buildings (not SFH)

I am torn between getting higher cap rates in areas like northeast philly (mayfair, holmesburg) versus much lower cap rates in cooler, appreciating areas like Kensington, Rittenhouse Square. 

Would you choose lower cap rates in appreciating areas with all the millenials moving in, or go higher cap rates in areas that you know won't really appreciate?

[Noman Tariq]

Nathan and Oldtimer real estate investor once told me real estate is everywhere in the world you can pick and choose any real estate you want to invest in what matters the most is what works for you as an individual I think that's one thing that you really need to look at and think about what works for you as an individual would you prefer higher Cash cash flow and no appreciation or do you prefer low or decent cash flow with a potential chance of appreciation?