Mathematically speaking, if Cap Rate = NOI/Purchase Price then by increasing the NOI, you are also increasing the Cap Rate.

I don’t know how many people use those but you’d have to be smart and good in mathematics and take the time to figure this out and I’d suspect many people don’t realize it.

(Disclaimer: This is an analytical interpretation based from what I see and had lumped those data into simple mathematical model in limits.

I have found that most things in business come down to a mathematical equation, and a balancing act between being careful and being courageous. 

Bottom line, the best way to look at anything financial, including vacation rentals, is mathematically.

I also enjoy learning mathematical concepts (the actual math part not so much).I competed in Speech (Extemporaneous) and took several Law, Public Speaking, and Debate classes.Athletics has always been a passion of mine; in highschool I competed in XC, Wrestling, and Track and Field.

Jon Holdman gives the exact "mathematical science" of Gambling Odds.

Mathematically you can put numbers to those probabilities.

Appreciation is mathematical.

You will typically need to submit quotes for the improvements when you apply for the mortgage and those funds will be held-back until the work is completed.I would suggest that you come to know and understand the process and mathematics behind evaluating a deal and projecting it's "after repair value", then develop your own spreadsheet - or, as we have done, software tools - to facilitate your analysis.