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Originally Posted by Googam
Don't know your market ..........but as a real estate investor, manager & developer, I'd never consider a property with a penciled out cap rate of 2%. It's over priced. Your accountant is right.
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Quote:
Originally Posted by CalPersFatCat
And that property better be an A+ Class.
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Originally Posted by mrbeverlyhills
All very good advice; but if you are willing to take a %2 cap, I have a bridge for sale.......
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Without knowing all of the facts/particulars, none of the above are absolutes. In fact, many savvy CRE investors intentionally seek out under-performing assets, and/or those with other issues (deferred maintenance, etc.).
The value-add space is still relatively hot, especially in multi-unit/multi-family properties.
So, it all depends on the numbers and your intended plan/exit strategy.
YMMV...