I’m interest in purchase a brand new condo in Provincetown cap cod.

The cash flow can look nice, but deferred maintenance, vacancy, and cap ex costs can eat up a lot of that cash flow especially inside the city limits where a lot of the housing stock is 100+ years old.

@Ellen Diamond I essentially found that as i was looking for MF in the 5-10 unit range several months ago, while sales price and rents were lower, cap rates were more or less the same (4-5%) than what could be found in the San Fran Bay area.

Can anyone comment on the average vacancy and CAP rates in the area?

My typical cash flow per deal allowing $200 per month for Repairs, vacancy, Cap ex is around $100 a month financed and $235 a month when paid off.

. $350,000 at a 15-16% (projected) cap rate with room to expand the net a few ways (storage units, coin laundry, coin laundry detergent dispenser, delete the cable that is included in their rent *never heard of that one*, possibly a soda and candy machine in the laundry area since there is no convenience stores nearby etc); With all of these changes I'm hoping to push it to a 18-19% cap rate. 

But that leads to some questions on Cap Rate..Who "sets" the cap rate for an area?? 

One can't understate how important compressed cap rates have been to multifamily's success over the last number of years.

Everything would be newish so cap ex costs should be lower than average but this would be expensive to do.

The Rockville section I'm at (King Farm) is crazy overbuilt all around the Shady Grove metro, capping appreciation and rent increases, at least in my experience.