But I also see 1% of the capital raised, 1% of the total of debt plus equity, and 1% of the property value (typically determined by a cap rate specified in the calculation in the operating agreement).  

Would I just use a cap rate?

@Justin HertzogI agree that you should be able to do a cap rate analysis yourself based on your income and expenses.

It sounds fine to me, but I don't know how I would pick a cap. 

I also don't see a cap-ex budgets in there.

I eventually had to put a cap on number of guests a tenant can bring for future lease term agreements because one of the tenant thought if guests are okay...it's totally okay to bring 20 ppl over...

Raising rent $25 on 25 pads vs 100 pads is a difference of $22,500 at a cap rate of 10% you created $222K with $0 additional investment.

We are interested in a cape where the top floor has plenty of length (37ft) but the height (with the roof slope) is a problem.

Each market has a cap on the amount of rent that it can reasonably charge.

Surprised nobody has mentioned that you shouldn't be using a cap rate to determine your offer.This is a residential property since it's under 5 units and it's value is strictly based off comps.Look what other comparable 4plex's have sold for and then decide your offer based on that.It could very well be that you're just in an area where the price to rent ratios don't make sense.