what is a good cap rate 
there is no single value for what makes an ideal capitalization rate and investors should consider their own risk appetites when evaluating a property generally a high capitalization rate will indicate a higher level of risk while a lower capitalization rate indicates lower returns but lower risk that said many analysts consider a good cap rate to be around 5 to 10 while a 4 cap rate indicates lower risk but a longer timeline to recoup an investment 1 there are also other factors to consider like the features of a local property market and it is important not to rely on cap rate or any other single metric 