CalculateRealEstateROI

Multifamily

How conservative should my exit cap rate be?

Entry cap + 50–100bps as base case; +150bps for stress.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Entry cap + 50–100bps as base case; +150bps for stress.

Expanded explanation

Cap rate compression assumptions sink underwriting. Always model expansion in exit.

Examples

  • 5.5% entry → 6.25% exit base / 7.0% stress.

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