CAP Rates and Multifamily investing

[Brian Geiger]

What role does CAP Rates play in Multifamily investing when it pertains to evaluating properties?

I heard from other investors that CAP rates are used for market sentiment and that Cash on Cash, Equity Multiple and IRR is what matters.

Other investors are saying CAP Rates are used to determine the purchase price and NOI.

Which is right?

Thanks for reading and assisting with this.