The 1-2% rule vs. CAP Rate

[JPaul Mills]

Ok all you seasoned, or not so seasoned, buy and hold investors. Im a wholesaler and I have just sent out a mail campaign for multi family units (2-6 doors).  Now I have heard of the 1-2% rule of making sure your buyer is getting at least that per month on their money, but now I keep hearing cap rate cap rate cap rate!!! 10-12% cap rate is the target mark I hear.  What is the better formula for you and why?  I'm pretty comfortable with the 1-2% rule but I'm still iffy on cap rates. Let me know your thoughts and if you seek cap rate please tell me the best way to find them. Thanks