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Updated over 5 years ago, 06/04/2019

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5
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1
Votes
Ian Goodstein
1
Votes |
5
Posts

My real estate agent claims this has 5.9% cap rate - thoughts?

Ian Goodstein
Posted

Long time listener, first time caller. A real estate agent I have been working with in Los Angeles claims this property has a cap rate of 6%.

https://www.zillow.com/homedetails/6564-5th-Ave-Los-Angeles-CA-90043/20327737_zpid/

When I calculate it, I get a cap rate of 1.5%.

I am new to this and I'm curious what others get as the cap rate? I am trying to complete my first deal in the Los Angeles area, and I'm looking to learn all I can to avoid buying a bad deal. Thanks in advance for any replies. 

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