However, it seems like there are so many factors that could artificially inflate/deflate the cap rate for a particular property.

Any intelligent feed back is appreciated.  

Governments (and residents) across the state are extremely anti-development, artificially limiting the supply of housing, keeping prices the highest in the country, and preventing anyone but the wealthy from buying a home.

I think it's important for an investor to intelligently and conservatively factor all metrics into an investment decision.

It'd make sense that more intelligent data analytics tools like that will start springing up to help analyze other markets.

But, I am finding that would backfire on me by not having money or the knowledge to hold an intelligent conversation with a seller!

That narrows it down to intelligent intent, and most importantly that seller is more than comfortable to cross legal lines for profit.

This will be essentially like option 1 above, but with possibly more convenience and ease for the tenant.I advise against building the water/sewer into the monthly rent amount; always keep the two separate, even if you are using a flat fee as described in option 3, because otherwise when you market the property for leasing, you will artificially inflate the rent.

I’ve recently began increasing my financial intelligence and getting into real estate.

Luckily, the intelligence you are seeking is quite easy to find!