This leads to setting a percent for repairs and cap-x.The taxes for each unit (can usually be found on the county website).Who pays what expenses/utilities.Insurance cost for each.Parking availability for each unit.

Also the list price is 289,000 if the units are rented for the $495 that I found it gives a cap rate of 12% that's pretty good for this area.

I'm on the road a lot, and this would be a great feature for PRO members!

I figured that the cap rate would be 3%.

Thank You,Mark (Yes, I have used the search feature)

The $300 Cash flow from the new duplex is referring to net cash flow after all expenses (vacancy,mngt, Piti, maintenance, capex, marketing, utilities, etc...)I guess I was thinking if I decreased the expenses by $3300 I will would be increasing the value of the property by $33,000 ($3300/10% cap rate). 

Cost Assumptions Purchase Price $285,000.00 Closing Costs at 4% $11,400.00 Total Cost $296,400.00 Mortgage at 30yr/5% Interest /20% down $1,223.95 Monthly Expenses Monthly Rent $4,500.00 Electric $250.00 Water $200.00 Trash $100.00 Vacany Rate 8% $360.00 Maintenance 8% $360.00 Property Manager 10% $450.00 Insurance $300.00 Monthly Property Taxes Due $121.97 Cap Ex Reserve 7% $315.00 Total Monthly Expenses $2,456.97 Less Mortgage Payment $1,223.95 Theoretical Cash Flow $819.08 Cap Rate Cash On Cash 8.6 14.37

Below is a quote from the county property appraiser: "The cap only applies to the portion of the property receiving homestead exemption.

So for my commercial real clients the best cap rate I can hit in Nevada for a retail strip might be 7.25 where in Georgia it can be in the 8's.

Understand your approach, but at the end of the day (assuming we're discussing analysis in support of a BUY vs WALK decision), in my opinion, IRR(Internal Rate of Return) is too academic and the NPV(Net Present Value) has factors one can adjust.We see lots of newbies just learning to calc cash/cash & cap rates and these are sufficient to make the go/no decision, using the K.I.S.S principle.Attempting to add IRR & NPV to the learning curve is not a requirement - - for you, it's another confirmation you're on the right track.