Essentially, the cap rate is the proportion of Net Operating Income (NOI) to the property's value or selling price:Cap Rate = Net Operating Income (NOI)/Property ValueThis ratio offers a direct method to evaluate the yield a property generates in relation to its cost.For advanced real estate investors, integrating additional factors might prove beneficial:Vacancy rate: The duration the property remains vacant.Operating expenses percentage: Includes insurance, utilities, and maintenance costs (excludes mortgage payments, depreciation, or income taxes).The adjusted formula for net income, incorporating these considerations, is:Net Income=(100 − Operating Expenses %) ×(100 − Vacancy Rate %) × Gross Income

Feel free to PM me. 

@Toby Munk and @Karen Fowler feel free to connect with me on other main social channels. 

You also benefit from warranties that can reduce initial maintenance costs.

Be sure to plug in to some of the local REI groups and feel free to give me a shout if I can help you on your investing journey!

The state is Florida.I did not consider this first mortgage an issue because I was simply going to live rent and mortgage free in this property myself, rent bedrooms, make good money and recoup my investment in short time (netting 4k income per month if you count not having to pay my current rent).

If price is below $360,000 then I back my way into if form there and calculate reno costs, etc.  

After factoring in the repairs and the operating costs it would be difficult to break even right now. 

Check big-cost items more carefully.

Here in GA it is a cash sale at the courthouse steps.With all the guru's and TV shows pushing "flip this house" and " a million mistakes were made and we still made money " newbies feel like they can't lose trying their hand at this stuff.In the entry levels flips new investors are overbidding due to lack of experience, construction materials are rising in cost, and contractors are in big demand so they are gouging on what they charge.