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Updated over 3 years ago,
Cap Rate Dilema in multis
I'm looking at a bunch of multi-families in different cities, and a lot of them are 4 or 5% cap rate in B areas that sell really fast.
My point is, I understand that you get lower cap rate areas at A or B areas, but with such low cap rates you're certainly having a negative cashflow at 5% rate with 25% down at 25 years.
Would love to hear from people who bought similar cap rate properties, what your strategy was to buy such low cap rate properties and how it worked out.