Based on a cap rate of 10%, the most I would want to pay is $109,200.

Originally posted by @JPaul Mills:@Bob BowlingHow can I calculate the cap rate on a property By dividing the analyzed NOI by your purchase price you have created a cap rate comp for the next purchaser of similar properties if you give him your calculations to analyze.  

I wouldn't do a SFR deal unless is earned a CAP of 12% minimum.  

They charge $500.00 per transaction and it there is a CAP at $2,500. 

If your project is coming in under a cap rate spread of 200 bps (this is what my firm uses in NYC so I'd assume mass market should be much higher spread), then ditch the project.

Repairs are being budgeted at $150 a monthAfter adjusting the numbers to remove water and a property manager and assuming a rent of $950 I am getting a cash on cash ROI of 10% and a cap rate of 8.7% and it just barely qualifies for the 1% rule.

@Jess Hewittread Brandon Turner's awesome blog which will answer that question:http://www.biggerpockets.com/renewsblog/2013/08/24/real-estate-agents-working-with-investors/Most agents don't have any idea what an NOI is, how to calculate a cap rate, the difference between an A class or D class property, or any other myriad of issues we as investors face that an average homeowner does not.

Sometimes we agree to a cap on costs that are yet unknown (like code compliance liens). 

If you do not track it right, your accountant will not know the difference and they usually deduct 50% of meals. (95% do not even ask)As to entertainment there is a cap.

A cap rate?