I’ve been talking to a few colleagues lately, and most are underwriting their off-market deals around an 8 cap — sometimes higher in smaller towns.
The old 10-cap deals? Sure, they still exist. But let’s be real — they’re needle-in-a-haystack rare these days. You’ve got to make a ton more calls and dig harder to even come across one.
They’re not gone… just buried deep.
Curious where others are landing right now — what cap rate are you actually using to underwrite in today’s market?