NOI & CAP Rate Expectations - Avondale 3 Flat

[Andy Huber]

Hi All - New to the forum/site, many thanks in advance for any feedback.

I'm targeting 3-Flats in and around the Avondale area, and am looking for perspective on the following...

1. What I should expect for a CAP rate? (6%+ is my current target)

2. What should include in my NOI calculation? I'd like to include allowances for vacancy, CapEx expenses, and property management (though the initial plan is to self-manage). I've been told that if I include those 3 (in addition to the usual: taxes, insurance, water, trash, electric, gas, & maintenance budget), I'll never get a 6% CAP rate. Thoughts on that perspective?
 

Thanks in advance,

Andy