Cap Rates In SE Michigan

richar18 profile photo

Hi,

has anyone had any experience with apartments in southeastern Michigan? I ask because in my research I have found that the going Cap rate is only at around 7.5%! with that rate I cant make ANY money if I go with conventional financing! WTF? this just doesnt seem right. That figure came from a market analysis conducted by Signature Associates, and I think it may be for REIT owned properties... in that cse, could the cap rates for smaller, privately owned apartments be closer to the 9-10% most investors look for?

thanks,

-Newbie-

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