Beginner question! Need expert advice

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Lately I was introduced to a quick way of analyzing property. Say your gunning for strictly 7% cap, the formula would be.

VALUE=NET REVENUE/0.07

My question is in, When calculating net revenue, what do you substract from the rent revenue, utility expense i know. Do you substract taxes and insurance to?

For example on this property.

Income $51,600,Taxes $4,400,Ins.$2200,Utilities$6,000,Tenant Pays Own Hydro!6 Fridges,6 Stoves,Coin-Op W&D,New Sep.Hydro Meters!In A High Demand Area Close To Lake/Marina!On Dead End Quiet Street!Only 1 Unit Avail.To See-1st Flr,Right Side!

[b]51,600-12,600 (everything calculated)/0.07
=557,142 VALUE

or is the formula not suppose to include taxes and insurance
51600-6000= 45600/0.07= 651,428 VALUE[/b]

I KNOW THIS IS A RIDICULOUS QUESTION, BUT I WOULD APPRECAITE ANYONE WHO COULD GIVE ME A INFORMATIVE ANSWER.

THANK YOU!