Should you focus on real estate equations when first starting out?

[Maurice Bunn]

Within the next 6 months my wife and I will purchase our first property. Of course we want to make a smart investment so we're focusing on Multi-Family homes, preferably a duplex. We've seen a few in our desired area and within our price point. I've been looking more and more into the investing side of real estate, and I've decided that I want to make a career out of investing in Real Estate. However I can't get pass the equations. I understand some of the equations, however the ones that are really giving me trouble are Cap Rate & IRR. My issue with these two are when and how to use them. I read that a CAP Rate is important when you're selling. My question is why and how? I've also read that Internal Rate of Return is important when you're buying. My question for this again is why and how? My final question is, should I consider any other equations when evaluating real estate? Besides the basic rules of thumb.

Thanks, 

Maurice Bunn 

Odenton, Maryland