Divide the Net Operating Income (NOI) by the calculated CAP rate, and that's what the property can afford to pay for itself.Direct capitalization excludes financing. 

Knowing the area sufficiently well to estimate this accurately would be my number one concern in estimating future returns... as they could severely affect returns.If you haven't heard of the 50% rule, this would also be good to research: basically advises that 50% of rents will go to operating costs over the long term (this excludes financing).Best of luck

@Joel Owens present company excluded form my previous post... you know who I am talking about LOL

The gain is taxed at capital gain rates in this case that gain is excluded.

Then, the total capital gain would be allocated based upon this percentage, and you can then exclude the amount allocated to your primary residence up to the $500,000 limitation.

I today's market investor buyers are a large segment of the marketplace in many areas.By excluding investors as buyers, the HOAs are actually reducing the number of buyers in the pool, and reducing the selling prices.

This locks in your excluded gain.What was not mentioned was this issue: if you hold it as a rental YOU MUST allocate gain between the ratio of personal years to rental years.This means if you owned it for ten years and it was a rental for 3, you will have to allocate 30% of the gain to the rental years.

What is your income excluding Flipping?

The reason flood is excluded from most homeowners policies is because the damage is catastrophic in nature.

Does your tenant selection criteria exclude felons?