Real Estate Mentorship by Tom McKay – FlipAnythingUSA › Forums › Members Forum › Cap Rate??? › Reply To: Cap Rate???
July 21, 2020 at 9:31 pm
#1279
Tom
Keymaster
So those are good examples. The returns sound right too for average listings.
The Taco Bell is certainly a safer bet and thats why its a lower cap rate. The mom and pop is higher risk of failing so a higher return would be expected. If the mom and pop property was a Dominos they would likely want a 5-6 cap rate.
Good job digging in.
Tom