The way I've valued multifamily properties is to calculate the Net Operating Income (Gross Income - Expenses) and then divide by desired cap rate.  

Hello fellow investorsIs buying a negative cashflow deal good if the IRR (Internal Rate of Return) and Cap rate are decent?

My question is would you guys rather sell stocks and take a long term cap gains at 15% tax rate, or take a loan and keep the stocks growing.

Also, in our experience, 95+% of agents have no clue how to calculate ROI, Cash-on-Cash, Cap Rate, etc., so what are they really going to help an investor with?

While I understand that current CAP rates have not necessarily adjusted to the new interest rates, which might be some of the issues.   

I was of the belief 5 units (triplex plus 2 ADUs) would make it commercial MF and valued on NOI and cap rate, not comps.   

Larger deals tend to trade in retail at higher cap rates.What you need to decide is how long you want your money tied up into a deal (their exit strategy), and how much you want to place, and if you get cash flow right away, partial, or none until certain metrics are hit.As an example you might get 8% preferred return but upside might be more marginal than a small retail turn around deal where exit is in 2 to 3 years and equity multiple is likely much higher for overall return.

Cap rates, location, and understanding the cost per door alongside your mechanicals and capex is going to be key when buying multi-family. 

They have been dumbing down the country the past fifty years, and you see the result, even with our elected officials.It sounds cool to cap rents, but are they going to cap expenses too.

Currently in escrow on a townhouse (cap rate ~ 5.25%).