“I never underwrite to a lower cap rate… if cap rates increase, you totally miss your mark.”
FP
Frank Patilano
Ironclad Underwriting Podcast ·
“At a 5% cap rate, essentially… for every $1 of rental income, we're getting 20 times that in valuation… if the lower it goes, so if it's a 3% cap rate, $1 of rental income is worth $33 in value.”
Jack Henderson · Mo Money · #524 Is Rentvesting Dead? w. Jack Henderson
Play from 9:13
9:13
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What was described
cites cap-rate conversion: at a 5% cap rate $1 of rent equals $20 of valuation; at 3% cap rate $1 of rent equals $33 of valuation
5% cap → 20× rent; 3% cap → 33× rent
Said nearby on the same subject
“Cap rates are only now about a percent above the... 10-year government bond rate... yields 6%, 6.5%... cap rates should really be between 8% to 10%”
SW
Stuart Weems
Investopoly ·
“The base rate rent for the MyState Bank Arena is $200,000 a year, but the Tasmanian government pays the LK Group $175,000”
CM
Claire Murphy
The Solo Bureau ·
“If you had an equal-weighted strategy, well, if things started to get out of whack, you want to get them back to equal-weighted.”
OA
Omar Aguilar
Masters in Business ·
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