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.

Success: stablized a great industrial IOS deal to a 12 cap.

So really to have a higher chance at success you should have both money to put in the deal to lower your leverage AND money on the sideline to cover those potential cap ex projects. 

Congrats on your success in acquiring the duplex that now will yield 6.5% cap at current lower rental rates. 94115 is a great zip code to be in.

They are far more common now and harder to find models without but:1) these add cost to the purchase price2) they don't bring a lot of value3) they can leak or detach and damage the propertyI own around 50 doors and I cap off the line at the wall or in the basement with a valve and a cap so the potential for leaks is 0.00001% :-) 

@Eddie Gonnella Also, when you are at such a scale, you may be able to fetch a valuation based off of cap rates, rather than a rev. multiple.So it is possible, and it is smart to think ahead in this situation so you don't get stuck with nothing if you want to exit!

I’m in CA also and paid cap gains on huge profits to the tune of 28%, which included CA state cap gains.

Its taken some time out on the west coast but we did nail a 10 unit for a 7 cap right off of MLS in the portland market. 

If you live in an area with caps on rent increases, it is so important to increase it every year or you will find yourself well below market values with long term tenants. 

Now i am capped at the rent increases i can provide to encourage them to give notice (one reason it is important to keep rent near market rent) and i no longer have the option to not renew their lease.there is a reason spa very large percentage of economists are anti rent control.