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Brent Rice, Trulia Top Recommended Broker
The Rice Group, Inc.
Capitalization Rate or Cap Rate is just w way financially to compare assets of different prices, different rents, different expenses to each other. That is not the only thing you want to look at ....for example it does not factor in your guess for appreciation....or your exit strategy. For example on commercial buildings who are you going to sell it to.....likely another investor ....who will look at the cap rate. On residential you might sell to a retail buyer who does not care about cap rate.
Typically commercial properties are much more difficult to purchase because of the strict financing requirements where as residential properties have many more mortgage option available.
If you are interested in either type of property I have off market properties that are available for sale for interested buyers.
128 unit property in Duncanville 5.25M
178 unit property in Irving 5.9M seller will carry back a note (some seller financing available)
The Michael Group