This makes a big difference as many of the big "brands" have no training that will help you understand how to figure out a cap rate or cash on cash returns.

CAP X is a..... CAP

The asking price would amount to a cap rate of ~4.4%.

Once they establish a cap rate (based on comparable lending rates + ownership PITA premium) they can then divide your NOI by that to establish assessed value. 

Overall I’m more concerned with cash flow and returns than a cap rate but I want to make sure Im creating an accurate and somewhat conservative scenario.

It has a cap rate of 6% based on what the seller's price is. 

Here is how it plays (Federal only)$10,000 is taxed at ordinary income rate with a cap of 25%$25,000 is taxed at long term capital gains rateCorrections very much appreciated!

Hi All, I need a capable, reputable and experienced commercial finance expert's assistance.

Even at 10 cap, and %40 expenses (which is the listed exp.) or 30% and a 25k home value it ends up 150k short.at 40% exp. net 22600 10% cap is 226000Homes at 25k is 225kTotal 450But If you value the home like the lots using a cap rate, and expenses being 20% from repairs550x12x9=59400k- 12k exp. 47400 net at 10 cap is 474k12 cap is 390kThat puts it at over asking priceThe land has to be more than 160.

@Walt Hairell you base the value on the rent using a CAP rate that is agreeable to you.