@David HodgeWhile the CAP appears simple and consistent on the surface, it is one of the most misused and deceptive ratios in investing.  

It is no different than any other utility - are you liable if your tenants misuse the water or electricity (i.e. grow op, unlicensed home brewer, etc)?  

From and after the date of this Contract, Buyer shall indemnify Seller for, defend Seller against, and hold Seller harmless from any liability, loss, cost, injury, damage, or other expense that may occur or may be claimed by or with respect to any person or property on or about the Premises resulting from the use, misuse, possession, occupancy, or non-occupancy of the Premises by Buyer or Buyer's agents, employees, licensees, invitees, or guests.

As a web programmer I go nuts with the misuse of terms. 

Eviction is a frequently mis-used word by property owners that don't really know what they are doing. 

Clients had a hard time finding parking because our dedicated spaces were always misused by locals.Good luck!

So seller is about $110k high in your estimation.No, I am saying you should figure what the actual market value is before you figger yourself into a not so great deal by misusing cap rates. 

The term real estate investing is often misused as a label for real estate business activities, such a brokering, wholesaling, finding, leasing, managing, etc.

I cannot tell what size buildings you are evaluating ... there are references to existing duplexes, but nothing else.Secondly CAP is one of the simplest, yet most misused ratios in real estate {I won't get on my soap box this time}.  

Misusing this may cause your scores to drop.I did have a few late payments many years ago when I got out of college.