Scott Prock Scott - Keep the black and white definition of a cap rate in mind.

Then landlords tried putting a cap on the utility bills, for example: anything over $300 tenant pays, but students didn't like it because they thought everything was included and now they're getting a random bill which they didn't budget into their expenses.

One of the posts that was removed, probably because it was an advertisement, mentioned a cap rate below 7%, which is very low compared to other markets.  

Based upon my research of the area around the Grove PATH so far, I think $1500-2000/mo is reasonable rent for a unit, which puts me at a cap of around $725k for a property (FHA PMI is killer…).

rate, and unless the property was guaranteed to cashflow at a cap rate that is at least 2-3% higher than your highest interest rate loans (school?) 

You can buy back the Baltimore ground rent at a cap rate of 6% or negotiate it at a higher rate to get a discount.  

You created a cap rate when you purchased the building. 

You do NOT calculate a cap rate on a property that has NOT closed. 

Assuming 55% of gross income is going out to expenses (owner pays all utilities), then this has a CAP rate of 11.1%.

That's a cap rate of over 27%.