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Updated over 5 years ago, 06/04/2019
My real estate agent claims this has 5.9% cap rate - thoughts?
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.