I personally don't like to finance any houses but I'm in area where I can buy so low compared to many.

You could use paddmapper.com , apartments.com or HotPads.com to compare rents in the area

That's why i compared it to points that regular banks will charge in their loan process.

Many lenders will accept a retirement account for this.If you are looking to acquire more properties in the near future, I highly recommend you start talking to lenders immediately to compare products and guidelines.Good luck

Given how single-family houses are valued (comparable sales), Cap Rate is really best suited to analyzing commercial properties, which are valued based on income generated.Fortunately, what you were calculating above really was (mostly) a CoC number.

Comparing that to a nicely put together home doesn't seem right.  

January 2016 Houston Housing StatsHouston Real Estate Highlights in January Single-family home sales declined 2.1 percent compared to January, marking the fourth consecutive monthly decline;Total property sales were unchanged at 4,965 units;Total dollar volume was statistically flat at $1.2 billion;At 262,663, the single-family home average price reached its highest level ever for a January;At $200,000, the single-family home median price also achieved a January high;Single-family homes months of inventory climbed to a 3.3-months supply versus 2.5 months a year earlier;Townhomes/condominium sales rose 15.6 percent with the average price unchanged at $183,076 and the median price up 2.4 percent to $140,000;Leases of single-family homes rose 2.8 percent with rents up 4.2 percent at $1,742;Leases of townhomes/condominiums climbed 12.2 percent with rents up fractionally to $1,568.

I would suggest checking out the markets here and seeing if there is anything comparable to NJ.

As I said $7500 is not high compared to what others are charging.

(After you deduct the down payment) it has a GRM of 67.575 and that's assuming you can easily get what the comparables get in the area for rent.