Just to better understand

[Josh Williams]

I was told in a previous post that CAP is irrelevant when evaluating a SFH, if I understood correctly.

But I still want to understand it.

About to cash-out on current residence

Refi at 135K
Insurance and taxes wrapped into mortgage $770 w/ 3.73% int
Rent $1100

Do get the CAP I would $1100 X 12 - 15% (vacancy & maintenance)=$11220

$11220/135K=8.31% CAP???