Cap rate in Cincinnati?

[Priya Thomas]

What is the caprate everyone is buying in Cincinnati area? Most of the properties I am looking at are 8 or less. I am aiming at least 10, is it too ambitious?

[Slocomb Reed]

@Robert Ellis has a really good point. I recently took an out-of-town client out to look at 8- to 20-unit properties but instead of calculating the cap rate based on the asking price, we calculated the purchase price that would give my buyer an acceptable cap based on her own projections and interests. There's no reason not to send out $300,000 offers on properties listed at $375,000, just to see who's willing to negotiate.