Not to say I'm feeling regret, but I'll explain:I am purchasing a two family home renovated from a cape, with one 2 bdrm 1bath unit upstairs, one 2 bdrm 1 bath downstairs.

And while we all know what you mean, and what might be posted at the site mentioned, keep in mind that capitalization rates are derived from the alternative investments given similar risks and evaluating the opportunity costs of your selected investment.An appraiser will assign a cap rate that is customary for a similar investment, considering risk, liquidity, location, management effort and other issues.

My experience so far is that selling prices are at a cap as low as 5 and occasionally as high as low 7's.

The way i came to this conclusion, and you can check my math, is through th NOI of a $200,000 6 unit building with a CAP rate of 8%.

Just make sure that you have a capable GC with a very detailed scope of work.

If you are able to get $3K from each unit totaling $9K, at a CAP rate of 5%, the property would be valued at $2.16M.  

Is there a cap on the interest rate on the loan?

If they sell is it enough to pay the debt off they want to pay off after a cap gains tax?

I can't speak for All Investors, or even 'most' investors, but my target is as High a Cap Rate as Possible WITHOUT being in the 'War Zone'...

Estimates with my contractor come to an additional $45,000 to fully renovate the building top to bottom inside and out.My question: I’ve got a cap rate on the property that currently stands at about 14%.What do I do next?