Helen Yuen, Agent, San Francisco, CA
You have to look at the CAPITALIZATION RATE = annual operating income/cost of investment or value
of each investment in a case by case study.
Within commercial properties, there's a big variety of business types...do you want to be an
absentee owner with a triple net lease?
Or do you want to live near your property and be a property manager of your residential property or have the expense of
hiring a property manger and have the CAP RATE decrease somewhat.
Does the property need repairs...this is an expense that can have an effect on the CAP RATE.