The cap rate will depend on many factors (property condition, tenant status, location, physical and rental restrictions, current rents compared to market rents, vacant units, etc.) so there is no dependable average figure. Generally speaking, if the property is in great condition with rents near market value or delivered vacant, the cap rate could be as low as 2-3%. If on the other hand the property has lots of issues, then the cap rate might be in the 6-8% range.
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