My Main recommendation is: ALWAYS try to buy at a higher cap rate than is usual for the market there.ie.

They are marketing at a 6.8% cap rate.

I am not sure what rule you are referring to about 50% - but the quick rule of thumb that I use when talking to a seller on the phone is to take 50% of the gross income (the gross they give me without verification)  and see it as the estimated  NOI and determine the CAP rate based on the asking price.

For me it’s two things - CAP rate at purchase needs to be at least 6% with the ability to increase to 7 or 8 and the cash flow of the property needs to be at least $500 dollars above the PIT.

Hello BPs and thanks for those who answer my question.I just purchased a single-family property in GA and wondered what is the right way to calculate its cap rate at the end of 2018.

High prices, low cap rates, high taxes, tenant-friendly rent laws...the list goes on and on.

I've seen them cover nicer areas but have income caps.

I am selling now to take advantage of not paying cap gains (and I dislike knowing that assessments are coming that I don't have control over). 

Also, you'll want to make sure you're making your offer based on CAP rate, so you can realize a better cash flow and improved property value over time. 

I have noticed in my area that some properties can perform (in terms of cap rate) 3 or 4 times better than others.