. It helps you compare the profitability of different buildings. A 6% cap rate means the building returns 6% of its value annually in cash if you bought it with 100% cash.
Don't just look at the total; check for "stale" tenants. Are half the leases expiring next month? Are there many "delinquent" tenants who haven't paid in 60 days? buying apartment complex tips
Paperwork rarely tells the whole story. You must verify the physical and social state of the asset. buying apartment complex tips