Cap Rate Formula

[Brie Schmidt]

I was hoping you guys could help me. This is the cap rate formula I used before I found BP - I thought I would post it now that I have people that can steer me in a better direction if need be. We don't include property management because we self manage and have yet to have a vacancy in 3 years. Am I missing anything?

Cap Rate
Purchase Price	$230,000
Closing Costs 3%	$6,900
Total	$236,900
Monthly Rent	$3,345
Annual Rent	$40,140
Less 2% Vacancy	$39,337
Annual Tax/Ins	$4,850
Total	$34,487
Less 8% maint	$31,728
Units	3
Structural Reserve	$750
Common utilities	$1,992
Total	$28,986
Cap Rate	12.236