Cap Rates During Downturns

[Shaun Armon]

Hey BP Community!

First post here on the forums.  I am a new investor in Fort Collins, CO looking for my first deal.  I am primarily interested in multifamily buy and hold.  I would like to keep my first deal local, but the cap rates here are a little scary at the moment (4-6%).  

Since I have yet to go through a down cycle as a real estate investor, I was wondering how high cap rates have historically gotten during previous down cycles?  I want to be able to accurately stress test my proforma's on potential deals.

Any thoughts are greatly appreciated.  Thanks!

Shaun