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.

It's not fantastic, but I can save for cap ex and repairs every month while still paying a few hundred less than I am right now in rent.Is it worth it?

cap rates are way too low.  

hello bp.. using the brrr method is one still capped at 4-10 loans when looking for refinancing out?

Once complete and rented, are you getting a good CAP rate (your return on cash will be skewed if your able to refi with near 0 in the deal).?  

So the box Vinyl Village type homes is the current build (mixed in with townhomes, duplexes, quads).Now back to your 10% Cap rate this is why most international folks are going to get burnt, and other folks will as well.