You do NOT want your cap rate to go up! You are losing value. The formula is V=i/r If you have a property that you bought $50,000 NOI at a 5% cap rate you paid $1,000,000=$50,000/5%. Now if the cap rate increased to just 6% your value would only be $833,333=$50,000/6% You just lost $166,667 in value. That is not good investing.
You do NOT want your cap rate to go up! You are losing value. The formula is V=i/r If you have a property that you bought $50,000 NOI at a 5% cap rate you paid $1,000,000=$50,000/5%. Now if the cap rate increased to just 6% your value would only be $833,333=$50,000/6% You just lost $166,667 in value. That is not good investing.