How to calculate Cap Rate with 100% OPM?

[Chris K.]

If you use 100% OPM for an investment home, do you still calculate and consider the Cap Rate as usual? Even the down payment is not personal money (Asset line of credit) then the rest of mortgage is bank loan. 0% down. If you cap rate is still low, but cash flows, isn’t this still good investment since its infinite returns?

[Joe Villeneuve]

First, CAP Rate doesn't apply to residential homes. It's only used for commercial REI.

Second, CAP Rate has nothing to do with the DP standing alone. It's based on the total price you paid, financed or cash buy doesn't matter.