What’s an attractive price point and cap rate?

One of our markets has a cap on the number of STR licenses with a huge waiting list and very few licenses changing hands over the last few years, so that doesn’t appear to be an option for us in the short run. 

While the cash flow and cap rate won't be sexy on that first property, it will appreciate well both in value and rent rate, and give you a good foundation to stand on. then, once settled and well-acquainted  with your new market, you figure out the best way to leverage the rest of your $225k. and then either stay in the first multi, or move out and rent the side you were living in.In my market of the KC metro, good condition duplexes in high demand areas ( 3 bed 2+ baths/unit) are 330-450.

New home communities have lower cap ex due to their age/warranty and that may be what you are most comfortable with.

From cap rates and cash-on-cash returns to net operating income (NOI) and internal rate of return (IRR), how do these numbers help you understand their impact on investment decisions?

Underwriting assumes 48% NOI margin and your cap rate is significantly lower than your cost of capital, resulting in negative cash flow.

You want to avoid stepping into the role of financial advisor for the seller unless you are an actual financial advisor working for them, but it seems to me that this persons best move would be to actually pass the property on to his heirs using what’s known as a stepped-up basis for cap gains tax. 

I've always calculated NOI as gross income minus operating expenses (not debt or cap ex) period. 

Consider cap rate alignment with the risk profile (opportunistic, value-add, core plus, core). 

Cap ex withholding?