Qs about Cap Rates, Appreciation, and at sale calculations

[Fran Arti]

Hi, guys:

I have several questions that I dont get right at the moment. Im doing a bunch of projections and calculations with a variety of scenarios to get confident enough to buy my first deal. With this my questions are:

- When it comes to calculate the exit cap rate of a property, how is it calculated? Heard that brokers can give you and estimate and heard (Justin Kivel, Breaking into CRE - Youtube Channel) that the industry standart is to add +0,1% cap rate during your holding period) and Im confused. How I can know the cap average in my area for my type of asset/class?

- Then, in terms of appreciation vs cap rates, in my deal analysis simulator, I must fill an average % of appreciation per year. If I bought at 1M, the asset will appreciate 5% a year during 4 years, then the final value, appreciated is 1.215M but I think I have to take into consideration factors like NOI, cash flow after taxes, the "calculated" cap rate at resale, economic occupancy, % vacancy, etc, to have the big picture and look at it with a next buyers eye.

Thanks for your time, have a great sunday a week ahead.