about 5.5%...but the cap rate is only one of many variables that need to be considered...for example, rental income and appreciation potential over the holding period
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Flavio Tejada, MBA-Finance, Realtor, Broker/Owner
CAP RATE = net operating income
Average is 5 to 6 %
Consider also :condition of the building
how long you may want to hold the investment
if you like the neighborhood
good tenants etc.
Helen Yuen, Land & Property Investment, Inc (415) 469-0577
If you are really serious about buying an income property you need to get much more educated about the product and this area. I hope that isn't too blunt but your question shows a level of knowledge that is really just skimming the surface.
Most of the answers you will get here will tell you about rent control and how the specific neighborhood will affect the capitalization rate. Going further will require you to sit with someone knowledgeable, having a long discussion on all the other variables that can affect your rate of return on investment. There are many reasons to buy multi-family properties in SF, usually high cap rates are not among them. You can do better in the suburbs.
Broker Associate, Paragon Real Estate Group CA DRE 01844627
All data from sources deemed reliable but subject to errors and omissions, and not warranted. truonly