Newbie landlord

[Jason B.]

Hey everyone. I'm learning about real estate investing and want to learn more about being a landlord and buying properties right. I'm convinced single family homes are not for me. I'd rather leverage my income in a duplex or triplex for starters. I've read where CAP rate should not be your only factor in purchasing a property. Obviously cash flow is a major factor as well. What other factors should I use or consider before purchasing a property?

Here is a property I am currently looking at. Can someone help me analyze this and determine what a maximum allowable offer price should be?

Asking price is $199,900

Cap Rate 5.40

Gross Ann Inc	$20,100
Total Ann Exp	$9,297
Net Operating Inc	$10,803

[Richard C.]

Not to sound like an echo of another poster (Hi Bob!), but what is the average CAP rate in the area? If you don't have any way of knowing (and you don't, not really, with a 1-4 family) than that number really isn't helpfull.

Is your NOI number before PITI or after?