This holds true for commercial and non-commercial investment properties.

It's good for a quick eyeball of a potential deal, but you're better off trying to get real numbers for your expenses.As others have mentioned, cap rate does not come into the equation at all from a lender perspective for anything non-commercial (4 units or less). 

It will be informal and non commercial...Sean

I am looking at a buy and hold strategy and mainly looking at small multifamily homes due to the convenience of falling under non-commercial loans and still have multiple units with separate cashflows.

Quit laughing at me :-)  I'm on of those people who hates the people trying to apply cap-rates to non-commercial properties.  

You can force the appreciation of a commercial rental based on bumps in net income - but non-commercial rentals are appraised differently.2 - One work around for getting credit for your Airbnb income (a tactic I share with those who take my Airbnb for Landlord course) is to form a trust and appoint a trustee.

Sill, all dealing with 1-4 units as non-commercialized properties.It's been awhile since someone could buy a new modest home for $8,000.00.

The Act does contain a limited exception that allows non-commercial housing operated by a religious organization to reserve such housing to persons of the same religion.Discrimination in Housing Based Upon Sex, Including Sexual HarassmentThe Fair Housing Act makes it unlawful to discriminate in housing on the basis of sex.

I know of no investors that have at least 5 years coastal CA RE experience that transition to cheap OOS non-commercial residential but I know many that have transitioned to coastal CA from the cheap OOS markets.

I question your calculation method as 60 years ago there was no $200k non-commercial properties in my market.