Essentially, the cap rate is the proportion of Net Operating Income (NOI) to the property's value or selling price:Cap Rate = Net Operating Income (NOI)/Property ValueThis ratio offers a direct method to evaluate the yield a property generates in relation to its cost.For advanced real estate investors, integrating additional factors might prove beneficial:Vacancy rate: The duration the property remains vacant.Operating expenses percentage: Includes insurance, utilities, and maintenance costs (excludes mortgage payments, depreciation, or income taxes).The adjusted formula for net income, incorporating these considerations, is:Net Income=(100 − Operating Expenses %) ×(100 − Vacancy Rate %) × Gross Income

Or does the process specifically require that you close with the cash that you prove you have when you win the bid?

Can they prove how long it takes to rent a vacant property?

I live in Ann Arbor and it's a really tough investment market because of the high values and taxes.

Orlando real has been tough. 

I understand that these smaller places are really tough to make it with vs the 9/8 places that seem to be doing well.

With so many variables and decisions involved, it’s tough to give a precise answer.One option, as @Melvin List suggested, is to use an FHA loan with a 3.5% down payment.

it's tough right now with interest rates so high.

Most owners wont open their books unless you have a contract and can prove you can close the deal.

Now, I want to pay it forward by creating a step-by-step real estate investing course specifically for high-earning professionals who might be feeling the same pressures I once did.I know how tough it can be to juggle a demanding career and personal life while trying to invest wisely.