Bucky Badger is considering an investment in a small retail…

Bucky Badger is considering an investment in a small retail building with three stores. Mr. Badger estimates the building will generate $300,000 in gross income with operating expenses of $175,000 and a $35,000 CAPEX or improvement allowance next year. If the asking price of the property is $650,000, what would Mr. Badger’s going-in cap rate be if he paid the asking price for the building?