The number may have to be slightly higher than $1500 to cover utilities.  

As Tom said, the natural target is very high-end luxury homes, but I'm wondering if I might be able to bring such a tool more down-market by taking some of the risk out of the process.

Did you factor in Cap Ex, Maintenance, Vacancy, utilities?

I.e.pay the mortgage, taxes, insurance, maintenance, utilities, etc., while depositing the income into his own accounts.  

- it's always good to see another Hoosier utilizing this great site!

Heres the way I calculate it,(Gross Scheduled Rent) - (Vacancy rate (at least 5-6%)) = Operating Income(Operating Income) - (Repairs & Maintenance + Utilities + Taxes + Insurance + Management Fees (at least 8%) + Replacement reserve (capX)) = NOIThen I simply divide the asking price by the NOI (Asking Price /  NOI) to get the cap rate.I can't find anything above 5 or 6 % at best, am I doing something wrong or does the MLS just suck that bad??

The utility room is a nightmare.  

We will be utilizing it.

I am sure it will take several years for the benefits to flow through, but when the residents in that market see their utility bills drop substantially in the future, all landlords should be able to push market rents a little. 

The ARV is pegged at $1,200,000 supported by nearby comps.I'm currently underwriting a 4bd 5ba luxury home that is approximately 3,000 sf in a Southern California affluent inland neighborhood in Los Angeles County.