Our valuation is very simply....what is the net cashflow divided by 10%, the cap we and our investor partners prefer to use.

If you want to use them for air travel, that is a different set of cards than if you just want cash back.Also look at rewards caps (e.g., Chase Freedom limits bonus rewards to $1500 in spending per quarter), whether the card has annual fees, and whether you can combine points from different cards into one account (e.g., citi cards let you combine points for all of their cards for "thank you" points, and Chase lets you transfer "ultimate reward" points between cards at no cost)Over the years, the credit card points rewards systems have become more complicated, and it is kind of a sad statement of the state of affairs of our economy when the return you can get via rewards spending substantially exceeds the return you can get on your savings in a bank.

Also, what type of roi or cap rate would you require?

I'm familiar with the 2% rule, 50% rule, CAP rate, etc.

This formula is MOSTLY used for fix and flippers, buy and hold (rentals) would care more about the cashflow or cap rate than the ARV.

According to the preliminary numbers, it is at about a 14% CAP.

I look for at least $100/mo after maintenance, cap-ex reserve, turnover, vacancy, management, debt service ect.

Now the cap rate is a less favorable 125,000/2 million = 6.25%."

CAP rate?

But for learning purposes, given that i just learned about cap rates, NOI, IRR, cash on cash etc.