Maybe cap rate isnt the right term.

I'm planning to liquidate about $1,000,000 of mid-west farmland (no debt; cap rate of 2.6%) and invest in multi-family.

My name is Adam Rothweiler, and I just moved to the Cap Hill neighborhood in Denver, Colorado from St.

The local bank I've called thus far, of which Im a member, has all only offered me a 5 year ARM 2% cap each year, 6% cap on the life of the loan, starting at 4.5%.

As an investor, using OPM(other people's money -- a mortgage), the purchase price and mortgage payments will dominate the cash-on-cash and cap-rate calculations.Yes, we would all like a Class A property for $1.95, but somewhere in reality is the balance for what can I get as rents and not have the expenses drive me to the poor house.Highly recommend the Calculators here on BP to evaluate the possible ROI using realistic numbers for each property.

This is driving the prices up and the cap rates very down. 

However, on the resale value you will be restricted to the cashflow / cap rate valuation.  

All of my properties were bought at a 9% Cap Rate - which is still doable if you know where to look now.

Everybody is doing deals in the MF arena at this price point and running the caps rate down.

I actually use all caps and bold font when spelling out HUGE PROFIT.