Dividing that by a purchase price of 150,000 would be a cap rate of 8.4%.You can argue finer points of the calculation (I didn't subtract 5% or 10% for vacancy for example, and 50% isn't good if landlord is paying utilities, doesn't account for differences in property tax rates in various cities/towns, etc.).But I think the thing is that you're dividing gross income by purchase price when you should be dividing NET income (NOI) to get the cap rate.

I know a couple, got a brilliant deal on 12 town homes in a row, they haven't lived together for the last seven years as he has to occupy one of the townhouses to make sure the other eleven stay honest.

But the question is, what can you provide that every other agent in town can't, or hasn't?  

I'm in an MF meetup group and they are bringing deals in from way out in smaller towns to hit 10% and then risks goes up due to smaller town economies w/little pop growth.  

And if not, you can always come visit our happy town (Outside magazines town of the year) and look at what we have. take care and happy investing. ps- I love numbers, so if you ever need help figuring out a deal, please PM me. 

I live there too and would like to find someone local instead of across town.  

Lewis Seals What part of town?

I'm definitely still looking into properties on that side of town but I also want to make the right decision.  

Hi @Powell CheeI'm a local Indy investor and have experience with some folks both here in town and locally who love to place debt on these smaller multifamily deals.

So I found this great HUD Owned large 3 story Victorian Col on corner double lot, one block from waterfront n view from 3rd floor with open and enclosed porches,  in the best part of town I grew up.