DP $7500, CC $4500, Repairs $4000Payment with Taxes and Insurance $286Management = 10%Repairs $50 monthly Cap Ex $100Vacancy 8% = $116Rent $1450$1450-145-286-100-50-116= $753 Cash flow monthly. $753x12= $9036 NIOCash on Cash Return Estimated = $9036/$16000 = 56%

What tend to be going in cap rates for C/B class properties?

I cut and capped the supplies to the one unit and removed the radiators. 

They do have caps on the rate, so your payment doesnt quadruple in the next month but these caps are annual so they will continue adjust.  

That’s not a lot of gross profit to cover cap ex on a house.

There is a huge gap between $1600 and $2200, but even at 1600, your gross cap rate is 7% which is well above any place in SoCal.

If you can get cap rates over 20% it might be worth it to invest in the east side of Cleveland, if not your probably safer looking on the west side

In this case, $41,625 / $600,000 = .069375, or a cap rate of 6.94.1,283 sq ft x 2 = 2,566 sq ft.A gross lease means that the rent a tenant pays is everything the tenant will pay.

@Sean McKeeFor that size when I am buying I value it on cashflow since its 30 year fixed financing so no need for cap rates.

Some other thoughts:One could theoretically argue that tertiary markets are better for cash flow since the market cap rate is higher.