Cap Return on Original Investment

[Ali Sheik]

Ok, so I suppose that this is an unconventional question and most likely doesn't have a clear cut answer but I will ask it anyways. To make it simple suppose you purchase a property all cash with an initial 8% CAP rate. I would assume that as time goes on and rental rate increases take effect that your CAP rate in turn increases. I know that it isn't directly proportional to rental rate increases because everything else (expenses) go up with it as well. Does or can anyone guestimate what your return rate could potentially be in 10 or 20 years? I am sure that there are a lot of variables involved (ie. rental increases,location, inflation, etc). Anyone with knowledge of numbers, expenses, rental rate increases care to take a stab at this?