CAP Rate or Comps

[Amir B.]

Hello BP Community,

This question is for the savvy REI's out there. When determining what is a great investment, what is the best way to go about it?

here is an example of a property for sale in my area:

Duplex

809 N Hobson Ave, West Sacramento, CA 95605 

Listing Price: $348,800

Current rents: $925

GAI: $22,200

What is the best way to determine the CAP rate? I like to use 8%. Just wondering how you guys do it?

Thanks