This is important because I am a capable and connected individual when it comes to all areas of residential construction.Last night I discovered a 3000sqft property that looks like it would be the ideal situation for me to house hack.

The CAP rate is an economic aspect of valuation, compared to like properties in that market, and before you buy, the CAP rate will help you reach an expected ROI, but it is the ROI that your price should be based on, not the guess of a CAP rate.An appraiser will use the CAP rate in the income analysis, what investors generally obtain for similar properties in that market, but they will also look at a more important factor of highest and best use which takes them to the market value approach. 

@Akshay Johar I can’t speak to appreciation but as far as cap rate you can find that most B and C areas in the Cleveland Metro Area have a cap rate of 8% plus.

The City is considering putting a cap of the number of permits for vacation rentals.

For this, even though it's on the smaller side, I'd still use a cap rate.Rough numbers: $600/unit/month income --> $450/unit/month after expenses (?)

If a broker is telling you a cap rate he does NOT know what he is talking about.

I am getting a Cap Rate of 4.2% (anything wrong with these formulas?).

Do you think that a cap on real estate values might be coming soon if at all?

Boulder County (not in the city or towns) also allows non-owner-occ STR, but with a cap on the number of nights per year it can be rented. 

Also, how much equity are you ideally trying to cap yourself on pulling out (if you have a cap), and what is you budget for the purchase?