@Johnny McKeonThis reminds me of a line in a Chris Rock song..."

There is nothing wrong with CAP rate, but like any formula, you need to understand what it represents.

It will be a grind but if you follow that formula you'd be financially free in less than 10 years. 

If you have an Excel workbook plug in the IRR formula to verify the math.

At some point the commuting formula just breaks down.

Question...If this (below) formula is for Brrrr.....what formula do you like for flips?

(Formula: $8,000 x (1+ 4%) ^(15)).

Am I forgetting to factor other aspects into the multi family formula? 

There is no perfect formula for the question "should I start with single family or multifamily?

The formulas used in the example are:ROI = (Income - DebtService - ManagementFee - Insurance - RETax - PeriodicFees) x (1 - StateIncomeTax) / ( DownPayment + ClosingCosts)Cash Flow = (Income - DebtService - ManagementFee - Insurance - RETax - PeriodicFees) x (1 - StateIncomeTax)Note:Neither Texas nor Nevada have a state income tax, so I left the state income tax out of the calculations.When comparing properties, you are unlikely to know about property-specific costs, like maintenance, vacancy, or renovation costs.