You want something with a cap rate of 9% or more with long term leases and solid tenants.

But 100% down seems to give a cap rate of 5.6%.

A cape built in 1900 that has had a new basement poured and a new 200amp electrical service.It needs a new kitchen, 2 bathrooms, the entire upstairs is empty to the studs, the downstairs needs to be sheetrocked, some remodeling downstairs.

It has a cap rate of 10%, $130,000 NOI and an asking price of $1.3 million.

Use a NOI at 50% of GOI... price it at a 10 CAP Rate and you'd attract investors.Start playing games where NOI is 70 - 80% of GOI... have a CAP at 6 or 7 and you're looking for a sucker.Also, put together a solid package, do the work for the investors.

It's hard to find a good ARM lender in this area, where you know that the loan is yours for 20-30 years, even if the rate might move to a cap 5 or 6 points higher.What is your true LTV on the property, assuming actual market value.What is the property type?

To get a cap rate, you must know expenses, and that is not just taxes, insurance, and debt service!

My last question would be, why did you use 10% as a cap rate rather than a different figure?

Most NYC apartments sell for a cap rate of about 5% which is about the cost of money right now.

The lower the cap rates in an area, the safer the location, the easier it will be to rent it, the greater the chance it will appreciate, and the less chance that you'll lose a bunch of money.Following your numbers, ($1300/month rent, 140K purchase price, $2200/yr tax&ins, 7% vac, $2000/yr maint), you are looking at a cap rate of around 7.4%... which really isn't bad!