Given that determining the cap rate is extremely complicated, the best deals are found by locating what I call mispriced properties. I amnot talking of discount properties -- properties that are sold at a reduced price because of some problem with the property. These properties are really sold at full price but the price is discounted from what it would have been if the property would have been in perfect condition. Prooperties are usually mispriced because the ower or the realtor was unable to determine the correct price of the property. This usually happens when owners try to save themselves the commission by selling the property themselves as FSBOs or ask the residential realtor who they really liked to help sell their commercial investment property.

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