There is no such thing as a cap rate being better....or worse.

As a matter of fact, an overpriced asset is simply an asset offered for sale at a price calculated using a cap rate that is lower than the prevailing market cap rate (i.e. whether in a low or high cap rate market).

Like lets say you have a typical deal   100k plus 1k over next highest offer UP TO 110K.. that's how you write them.. lets say someone offers 112 well then they get the deal. as the escalator has a cap it always has a cap at least mine do.what it saves is someone bidding 20k over the next highest and paying way to much.. 

So if you have a ten unit building with an NOI of $20,000 and a cap rate of 10% this would equate to a value of $200,000 or $20,000 per unit.

While so many focus on the low yield from a cap rate perspective, don't forget that lower cap means you have a stronger multiplier for the value the rehab and subsequent NOI increase brings when you refi or cash out.

You may want to look into more turnkey investments where you can invest $1M of equity in a more stable asset class and target a cap rate of 7%+ and simply hire someone to manage the investment for you. 

@James Wright the last two we have done (one is currently in process the other just closed 60 days ago) both were 4.75% 5 year initial term, 5 year extension, with a cap of 5.25%. 

when investors say deal, it can mean a variety of things.Not all investors invest with the same mindset.Some would be happy with a cap rate of 4%, some would only do 8%-10%, some do not care about cap rate and want to focus on appreciation after holding x amount of years.Some are focused on buy & flip, some are looking for holding on to a lot until a miracle happens in the area.The question is, what deals are YOU looking for?

Is this a property you need a cap rate to determine to sell?

@adrian stamer - I know how to calculate a cap rate, and CoC.