For example I know many who are now just lending because they are getting 10-12% short term which is far better than any cap rate on real estate. you do not have the equity upside as you do real estate but its a way to play the short game to see what happens over the next 12-24 months and decide when you want to buy.

Low risk investments sell at a premium, that's the whole idea of cap rates.

A colleague recently closed on a 12-unit property in San Antonio and shared that a 6.8% cap rate, combined with lower property taxes, made it a no-brainer.

Yeah, the cap ex is only one of five factors.

Properties are not like stocks where After IPO the market cap is so large that that most of the life changing appreciation is gone. 

Hi, Jaycee The deal makes sense for me after accounting for all expenses including vacancy, cap ex, and repairs.

The price is much more expensive than Midwest, but the yield or cap rate, particularly commercial properties, are similar to Midwest.SFR may have a lower cap, in good area.

When we create our business plan, we also include our exit plan.We'll only proceed if we can clean this up, acquire new tenants at higher rents so we can increase our NOI, which in turn should reflect our cap rate and profits.Since this asset class is new to us we will tread cautiously.Scheduled to preview tomorrow. 

I am NET cash flowing just over 1k (includes maintenance, repairs, cap-ex, vacancies, utilities), which is pretty good considering this is in SoCal.

But, when you combine all the potential lost income and damages, I will definitely be the losing party since there's a cap on small claims.