@Amber Saulsbury @Irina Belkofer is correct in laying the CAP rate formula, as I read in one post above where they included the financing expense which SHOULD NOT be included when calculating the CAP rate.Anyways, here in El Paso, Texas I can buy a multi family (8 unit or over) C- building with a CAP of 8% - 9%, Most investors settle for that, but my value play strategy is, I come in and rehab the units, add individual water meters and charge it back to the tenants, sign 12 months leases, raise rents, swap washing machines for coin-operated machines, you get the idea, anything that helps me reduce the expenses.

I'm hoping for a cap rate of 10% but I know that will be hard to come by.I need someone who is local to the area, has experience with investments, and has a pulse on the current market. 

Small commercial buildings, 5 to 15 units or so in our area do not typically trade based on a cap rate.

Great properties there, but good luck finding a cap rate you like (you won't).  

Take market rents per sq ft and then get a cap rate to cost.Honestly you might want to forget the strip center if you can land a national STNL tenant for the site.

Some deals give you a cap of 5%, some 7%, and more if lucky.

Like I said, cap rate is really only used for commercial investing when a cap rate is essentially set in stone based on the type of investment.

Now in 2013 most will accept a CAP rate of 6%.I hope they release inventory by amending AB284/AB300.

There are only a few components, and a capable repair person should be able to fix whatever you buy.

It avoids realizing a cap-x factor, and facilitates depreciation to maximal effect.