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Subject Expert
The higher the quality of neighborhood, the lower the cap rate. I’d expect cap rates in the east bay to be 2x or 3x higher than South Bay.
If cap rates are lower than interest rates it will be hard-pressed for you to turn a profit
Subject Expert
Cap rates lower than interest rates isn’t uncommon in affluent, stable markets. It often means that the investor is using very conservative leverage and also betting on outsized rent growth over time.
What are you looking for? Cash flow, appreciation? For me, Bay Area is not worth it. Better to invest in other markets outside CA.