A 3 or a 4 cap in one market is not always equal to a 3 or 4 cap in another market. The risk profile is greater in markets where there’s fewer regulatory challenges and lower barriers to entry in developing new projects. In California, and other West Coast markets, on the other hand, regulations and restrictions are far more onerous, so these markets are perpetually supply challenged, and therefore higher and more consistent rental demand. Eddie Ring, Founder and CEO of New Standard Equities, specializes in value-add multifamily on the West Coast and has generated 29% IRR’s and equity multiples of 2.6 over three to five years hold periods for his investors. Eddie sticks with what he knows, as opposed to exploring other markets, and has generated incredible returns for his investors.