Question on evaluating apartment building

[Brian Fournier]

Hi Everyone,  I am beginning the process of switching from small 3-unit apartment buildings to larger 10-20 unit commercial apartment buildings.  I am looking for advice on how to evaluate these larger buildings for purchase.  

There are, of course, the obvious things about condition and location of the building which can be show-stoppers. However, assuming these things are satisfactory, how do I tell if a building is a good deal?

My approach at the moment is to start with a target cap rate for the building and then set an offer price to match that number minus any major repairs that need to be done in order to realize that given cap rate.

How's that for starters? What other parameters should I be looking at?  Oh, and what is reasonable cap rate target for apartment buildings of that size?

Thanks!