The result of the cap rate calculation is important because it provides investors with a lot of information about the value of the property, the risk in acquiring it, and its potential return.

gives you properties on and off the market, allows you to filter, which is one of it's best features in my personal opinion.

There's a reason why we are able to depreciate our buildings....it's because cap expenses take a huge bite!

This is a great forum with very knowledgeable members that will help to guide you in the right direction.If you haven’t been to it already, the Bigger Pockets blog features links to their fantastic podcast and many great articles: https://www.biggerpockets.com/renewsblog/There are a few self-contained guides that you can access here: https://www.biggerpockets.com/guides

The best way to explaining this is for you to download an IRR calculator spreadsheet or build your own simple one and play around with one.For what its worth most deals I deem meeting minimal IRR standards is 13-15% but you have to dig a little deeper to uncover the real placements of cashflows and capitalization events... and then dig even deeper to verify the assumptions such as occupancy, rent increases per year, and what reversion cap rate was used.Again I don't look for IRR cause its manipulated a lot instead I look at total return on a 5 year basis.

What areas in washington state have good cap rates for short term rentals?

Really enjoying the latest podcast featuring her as a guest.

Sure your annual expenses may be covered to project a possible break-even (assuming you considered Cap-ex/maintenance expenses), but your ROI on your 190k investment is very small. congrats but just be careful about getting more houses for the sake of adding to your portfolio rather than adding cashflow positive properties to your portfolio.

We also can't use a metric like cap rate and NOI as it is more suitable for more than 4 units.What is the best metric to evaluate such properties?

I constantly point out features to my buyers that will either add or detract from functionality and market value - these are all intelligent people and many are repeat home buyers, but they still find the information very useful.