Suburban cap rates

Levered cap rate = cash on cash return with 25 percent down 30y loan as primary residence?

Can prob get a 30 year loan at 2.5%. On my world, cap rate = rent minus interest expense minus costs (landscaping, property manager, repairs, taxes, vacancy, broker commission, snow removal, etc) divided by cash invested (down payment plus closing costs)

*In my world

Ps, I realize that what I'm really talking about is levered cash-on-cash yield, but I can "translate" by backing out interest expense and cash vs total property value.

George, you still need to quote a down payment percentage I think.

And allowance for major repairs which occur every few years. Why not just use standard definition of cap rate which has a depreciation allowance?

Let's say 25% down, with 1.5% of property value each year for depreciation.

George look at INVH to see what you can really make. $18bn of assets. Net income $200mm range. EBITDA $1bn range. Depreciation is accounting depreciation rather than Capex reserve.

I have not delved into details but one needs to add back some accounting depreciation to get current market value of assets. So probably $25bn property making $1bn. 4% cap rate.