Explain what greater risk is exposed when a low cap rate is


Thinking in terms of the single line item that would be affected on an Income Statement when more is paid for a property and how this line item could be impacted if projections for vacancies and expenses are underestimated at some point in the near future should the market conditions change --- explain what 'greater' risk is exposed when a low cap rate is used? (Hint: Look at the line items 'below' the NOI on the Income Statement (since NOI would be the same regardless of the purchase price).

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Financial Management: Explain what greater risk is exposed when a low cap rate is
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