CAP Rate Learning Curve

[Deborah Burian]

I have already purchased a 10 unit multi and am optimistic about its future but it is, and was expected to be, a work in progress.

However, I was using the actual numbers to grow my knowledge of CAP rate and I'm a bit stuck. When including fix-up costs in the basis, how far out can/should I look? First quarter? First year? Whatever is minimum to turn units?

Hoping those of you who are more experienced will have some insight to share.