Cap rate-include repair cost?

[Kim Forgione]

Hi. I know you don't include debt service in cap rate, but do you guys include repair costs when calculating cap rate or only the purchase price regardless of what shape the property is in? And I assume you do not include closing costs? 

[Wayne Brooks]

Your cap rate, in my mind, should be based on your NOI verses your All In acquisition costs....purchase price, closing costs, and repair costs to get it rent ready......otherwise you're kidding yourself.