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