Cap Rate

[Ross Sumner]

I have a good deal I want to present to a few investors but I have a basic question about cap rate that I am hoping someone can help me out with. So with the current list price, the cap rate is 23% assuming the duplex is fully rented with a 2% vacancy factor. This is for a duplex where one unit is currently filled and the other needs approx $10k in repairs before it can be rented out. What I have done in my presentation is add another tab to the spreadsheet and included 10k to list price and added a note saying for repairs. I feel like that gives a better representation of cap rate, which would now be 17%. I am doing this because I will be asking investors for that 10k as well but I have not seen any discussion on this so I want to make sure I am on the right track before I look like a big fool. Thanks!