LA 4-Plexes Cap Rate (cash, properties, company, commercial)

[Snowball000]

What is a good CAP rate to use for Los Angeles properties (4-plexes)? Do you expect it to increase?

[DMenscha]

In the old days (back when I did commercial real estate) I always thought SoCal cap rates were ridiculously low and that there were better multipliers to use such as $/unit. The company I worked for usually wouldn't touch a SoCal property because they were really hard to make cash flow with our yardstick of 10-15% down.