its funny you brought up this subject tonight, I am good friends with a firefighter & teacher(husband and wife) who both work for Milwaukee & we discussed this tonight.

But I think Cap rate is very misleading.I just bought a property for 1 mil, owner last year brought in 80K so his cap rate is 8%.  

@Gerald Harris brought up some important points on rehab costs and such.

This is the issue you brought to me, this is the solution.

Google brought me to bigger pockets.

I recently attended a Fortune Builders seminar, but decided that I could not afford their course so I started looking around the internet for more information on real estate investing which brought me here to BiggerPockets.

Today I brought my hard copy of the book with me to the office. 

Of the $420K, I got a loan for $304K, brought in a minority partner for $80K in exchange for 19% equity and spent $36K of my own cash in exchange for the remaining 81% ownership. 

I could have a property that brings in $6k and cost me $20k to purchase and have a property that brought me in $6k and cost me $50k how do I determine if they are a deal? 

I have also brought a friend with me so that if I'm busy answering questions or dealing with paperwork, he can answer questions from other "tourists."