Cap rate for Multifamily

[Sid Naik]

I am looking to get into Multifamily and based on what I have read it looks like properties with high cap rates is the way to go . however if I am not looking for immediate cashflow , how do you make money in areas like bay area ? does appreciation in property values count for multifamily ? in that case cap rate would have to get lowered for the property price to go up besides rent increase . if we are looking just at rent increase to increase property value with cap rate remaining same then it would not make sense to invest in areas like bay area ? if SFH appreciate i would think even multifamily appreciate without same corresponding increase in rent but with cap rate going down ? For example we have seen condo price increase 3x in bay area over the last 7 years in some areas but rent increase has not been 3x . so multifamily would never give me the kind of appreciation of buying individual units or SFH where pricing is based of rents ?