Help with understanding Cap Rate,Cash Flow etc

[James Hunt]

Hello BP, I'm looking for some clarity regarding my numbers on a rental I have: House was purchased for 30k Monthly gross rent from section 8 is $750 Mortgage is $365

[Denny Robert]

So let's break it down:

Monthly NOI = $750 - $70 = $680

Cap Rate = $680*12 / $30,000 (*100) = 27.2%

Cashflow = $680 - $365 = $315

Annual COC = $315*12 / $2500 (*100) = 151.2%

One thing I would mention is your technically not including all expenses when you're doing the work yourself, such as property management.