# Why you should NEVER buy based off Cap Rate and which metric you should be using

Page: https://stenobird.com/podcast/the-do-more-podcast-6571182/why-you-should-never-buy-based-off-cap-rate-and-which-metric-you-should-be-using
Text version: https://stenobird.com/podcast/the-do-more-podcast-6571182/why-you-should-never-buy-based-off-cap-rate-and-which-metric-you-should-be-using.md
Podcast: [The Do More Podcast](https://stenobird.com/podcast/the-do-more-podcast-6571182)
Published: 2026-06-01T10:00:00+00:00
Episode link: https://the-do-more-podcast.captivate.fm
Audio file: https://op3.dev/e/episodes.captivate.fm/episode/a983f21e-ca67-40b0-baf2-e13786004ef5.mp3
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Duration seconds: 979

## Resource

Buying based on cap rate? That’s a no-go, folks! In today’s chat, we’re diving into why you should steer clear of cap rates when considering your next commercial property purchase. First off, let’s break it down: a cap rate is essentially the return you’d expect on an all-cash investment. But let’s be real—most of us aren’t shelling out cash for these properties like we’re at a garage sale. I’ll share some juicy tidbits about how sellers and brokers can twist the numbers to make a cap rate look more enticing than it really is. Instead of getting caught in that trap, we’ll discuss the metrics that actually matter when buying, like cash-on-cash return, which can lead to a much more profitable investment down the line. So grab your favorite beverage, and let’s get into the nitty-gritty of making smarter investment choices!

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