CAP Rate calculation

[Charles David]

Can you guys and gals help me check out my CAP rate calculation and tell me if there is any thing I have forgotten? Cap Rate is Net Operating Income divided by Property Cost or Value. Net Operating Income= +Revenue generated - Operating Expenses INCOME is just the Rent $990/month EXPENSES are: HOA fee (WSG). = $240/mo Property TAX. = $88/mo (1056/12) Hazard Insurance. = $ 18/mo (210/12) Maintenance + Repairs = $ 17/mo (600/36) Total Operating Expenses = $ 363 / mo +Revenue generated = $990 / mo - Operating Expenses = $363 / mo Net Operating Income= $627 / mo ANNUAL NOI -- (627 X 12) = $7,524 PROPERTY COST WAS 119,500 7524/119500=0.0629 So the Cap Rate is 6.3% ? Or should I be using the current market value instead of the cost of the property? Thank you. Charles