OK, you are advising a real estate investor, and she is curious about an investment. It is a single-family residence, renting for $3,000 per month. It can be purchased for $300,000. No vacancies are expected, and it has 40% or its gross income consumed by operating expenses. 60% of the gross income is left for the NOI. Compute its NOI. Now, if she pays 50% down, what is the properties cap rate? Recall that neither the financing chosen nor the size of the down payment influence the cap rate!