@Daniel Ben-Hur - It really is going to depend on whether you have cash reserves for vacancy, repairs and cap ex. 

We use MLS data (active listings), cross-reference rental comps, take out expenses, and produce an NOI and Cap rate for every single family and small multifamily available simultaneously. 

What LTC cap are you currently facing?

Difference this time around was the mezzanine piece of equity 20 years ago was debt financing and today it is investor equity. correct, the sudden U sharp decision by the Fed to increase rate the fastest since 1830 combined with three percent cap rate is recipe of wipeout.

I think it should be based on the commercial version with the NOI and the Cap Rate since it’s a 12 unit.

(Been recently looking in Clear Creek County for a client, myself.)Clear Creek has a cap on non-owner occupied short term rentals.

In the Reno, NV market there are better cap rates on single-family than multifamily because the the supply issue of multifamily.

As to how much, 5% of the monthly rental amount (not what is due) is your cap.

Do some investors buy sight unseen based on cap rates?

On the commercial retail side when a client is selling a multi million property at a 6 tor 7 cap rate you better believe they have impeccable records.