CAP rates are a crummy
way to value residential real estate and an equally crummy measure
of financial performance for all
of the reasons mentioned above and more... you may disagree, but since the only other person out there that regularly disagreed with you on this was kicked off this site for
doing so, and just about every other turnkey operator seem to be in the
business of perpetuating it as a metric to try to artificially pump up the attractiveness
of their offerings and scam newbies, please forgive me if I try to offer some counterbalance and perspective to other
new investors who would otherwise not have any other exposure to such
radical ideas as using CAP rates the
way they were designed to be used by the professionals who use them.