This is the first number a discerning buyer looks at when evaluating a building. CAP rates vary from city to city and, even then, vary within pockets of a city.
The insurance company no longer wanted to insure the property unless we provided a written guarantee that there was no knob and tube wiring in the building.
I saw an opportunity to completely gut the units and significantly raise rents. The problem with rent control, though, is that you can’t just kick out a tenant.