if i buy a building at 5% cap rate at a discount, is it still 5%?

[Jim Growfer]

If someone is asking 600k for a building that has a 5% cap rate, 30k NOI and i purchase it at 500k. It wouldnt be 5% anymore, correct?

Cap rate confuses me a little bit, because that cap rate would now be 6% not 5%.  

Where am i wrong?

[Michael Le]

I think you're confused because there's the market cap rate and then there's the cap rate you're buying at, which doesn't always match. If you're buying at a good price then your cap rate will be higher than the market.