I would propose a better way of evaluating real estate and that is to take the difference between the CAP rate and prevailing interest rate and use that to evaluate whether something is a deal or not.D = CAP - %APRThis would allow you to calculate the spread which is directly related to your debt assisted profitability (like a cash on cash return).You can vary what “D” you will accept based on the normal factors you would consider when thinking of the CAP rate (location, building type, number of units, financing, deferred maintenance, etc).You could also rearrange the equation to calculate the CAP to search for opportunities and how to offer for property:CAP = D + %APRIn this case, you can actually figure out the CAP by knowing the “D” you want to get for a given location, building type, etc and understanding the financing available to you and other investors for the opportunity.Any reason this is an inferior approach to CAP rate or cash on cash return?

After purchasing, we have re-arranged some leases, and are working on improving the AirBnB Units in order to maximize Cash Flow.

They generally will paint and do minor remodeling, rearrange your furniture or supply new furniture delivered and set up, add artwork to the walls, arrange for professional photos, etc. 

You're simply rearranging the way you do your banking.And if nothing else, think about your money sitting your checking account every month just waiting to do it's job.

I've gotten more done in the last two weeks that I would have in a month thanks to rearranging things on my phone to serve my purpose. 

For example if you pull rental comps etc. and then you find out things are in a flood zone, rearrange your process to check floodzone first. 

To streamline the process and get the grants out the door they rearranged the application process.

Kitchen was lengthened to about 30' and cabinetry and appliances were rearranged and upgraded. 24X16 deck added to rear of house and a slightly larger patio was poored underneath.

A decent contractor can tell you which walls to remove and how to rearrange the kitchen. 

Sometimes you just have to rearrange the pieces the right way.