This has created, since about 2016, an asset class of very limited MF properties in the Southeast that trade at unreal cap rates.

Also noted, most townhomes reside in HOA communities that have rental restrictions/caps and HOA fees that'll eat into cash flow. 

I suggest you research cap expenses and cash flow on BP.  

they i multiply by 12 and divide by targeted cap rate. 

(BTW, that agreed on price should be the main data point in value).Even in a commercial appraisal, applying a cap rate to determine value, +- a quarter percent, which is a perfectly reasonable delta amount, will swing those values dramatically.Like BPOs, appraisals also use terrible comps many times, especially when they are doing so blind with no set sales price set to achieve.

But as someone trying to get their first deal, I am not hoping to get a great deal but just an okay deal, which means a cap rate around 6-7% with at least neutral cash flow to start off.

You can do this all at once if your state has a low cap (rent for our units has a late fee applied on the second) or if you're allowed a larger late fee you can apply it in stages 1/3 on the second, 1/3 on the 7th 1/3 on the 11th. 

Should i be analyzing cap rate on these properties? 

Investors chase the CAP rate and it works for a while until it does not and then they end up selling to the next fool. 

A 6 cap feels thin for a small market.