What factors effect the ratio?  

I was targeting a 20/80 GP/LP with a 12-13% IRR with a 2 hurdles +14% IRR GP/LP goes to 30/70 +15.5% IRR GP/LP goes to 40/60.These will be usually 25 to 50 unit infill multifamily deals usually townhomes or apartments I would love the feedback  We have seen projected returns all over the place, as the factor that comes into play is the risk.

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.

It depends on many different factors.

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

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.