Year 2017 - whats a decent cap rate these days?

[John Chung]

Hi all,

Newbie here....

I was looking at some multi-family RE's.  Wondering what is considered a decent cap rate on an apartment.

I read somewhere that 8-10% is good...but looking in LA...im seeing some 4-6 unit apt at around 5% cap

Is that acceptable as a cash flow positive? or is that more of a breakeven point?

When i comes to cap rate....im in the blind....in the area that i am in