Asking for an average Cap Rate

[Cyprian Sadlon]

Hello BP,

I have my eye on a property in Dutchess County NY. I wanted to know the average cap rate for the area, would that be a question I could ask the real estate agent I am working with? Or is what I just said completely unintelligent... Compared to all my other research, comparing Cap rates is the one area which I feel I am lacking. 

[Bonnie Staples]

@Cyprian Sadlon It is certainly NOT an "unintelligent" question. It is a very tricky one - I have found that the best resource is if you #1 have a Real Estate Mentor that has YOUR best interest at heart -  -- So with that, I would certainly not rely on a Selling Agents opinion, as they are usually working for the Seller.  If you don't have a RE Mentor the next best thing is to check with a lender.  It is always good to start a relationship with a lender / Mortgage Broker prior to identifying a property as they can give you some great guidance on many of your questions and help you solidify your plan of action.  

I hope you found this info helpful!!

Bonnie