So you see - Cap Rate is great for comparing two properties - if they were bought all cash.But its very deceptive when used to indicate how much money is made.The ROI is the true measure of that.Thank you.

Once you're in the business, you'll need some way of actually measuring your successes or failures.I'd start there.

My post was more aimed at the new investor so they don't fall victim to the bad lenders out there.  

Probably the greatest mistake was aiming too low.

I tell people who ask for my help to look at these numbers just as a starting point to begin a search. it helps to down-select from the many many properties you can find online.The real measure is: What do you want to accomplish?

So I checked it out and measured mine, and sure enough, theres about an extra 100 square feet.

This isn’t easy by any means but it will be 10X worse with the market going against you.Lastly, I would note that “default” is not the best measure many times.

IKEA sells countertops in one piece square slabs (for islands) and cut to measure for counter tops - that can be fit into the back of a Dodge Grand Caravan with the back seats removed. 

I aim for $200 a month at this price point.  

Awesome discussion everyone - love to hear everyone's area of interest, and reasoning behind it.Not ready for Japan or the Bahamas just yet.... aiming to stay in the US for now.