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

These factors are crucial, yet no software has successfully addressed them—until now.Imagine you have a property in a high-income area, but just one street over is a neighborhood in the bottom quartile of income.

The appealing aspect here is the ongoing population growth and other economic factors.

Budget will be a big determining factor as well.

After factoring in the repairs and the operating costs it would be difficult to break even right now. 

It depends on many different factors.

I guess it’s a non factor. 65%-70% really doesn’t matter as long as the $800k cash out happens with a new $1.1M loan.

@Shayna Hatcher I think there are a couple of factors that you should consider.1.

It maybe the case that your accountant either doesn't know this rule or is factoring in something else 

Both are huge magnets for professionals to rent.With a condo/TH you'll have to factor in HOA fees, but there are some nice options that would generate higher rents.I have a California-based BiggerPockets client who purchased 8 homes in one year in the Southwest Valley.