You have to translate everything into numbers and from the numbers you can make a decision. 

So, now we have a perception based on an assumption, since most getting into real estate are chasing the dollar, perceiving that your guru has money equals success which translates into their instruction as being valuable.   

My wife is Chinese and translates and then I go be the "front".

How you leverage the deal will impact your return.Prime locations carry a higher price, which translates to lower ROI usually, you should consider appreciation in prime locations, that's where most of your long term returns might lie.Inspect the snot out of it!

Fewer buyers translates into an imperfect market.

. - let me translate what @Bob Bowling said :)Cap Rate is not a good metric of return, but if you use it as such, it uses the NOI (Net Operating Income) as the basis:NOI = Gross Potential Income - Operating Costs (operating costs do not include the debt service).So - the $36,000/annum of presumed CF is the wrong figure to use in a valuation formula since this includes the debt service:Cap Rate = NOI / Value = ($36,000 + Annual Debt Service) / Purchase PriceNow - to Bob's second comment as to why does it matter if Cap Rate really is 2.5%What Bob is likely talking about is that if you buy a building at 10 Cap, force the NOI up by 20%, and turn around and sell at 10 Cap, you will make money in the delta.

Obviously, your company's expression that you care to help does not translate into action.

A low hourly rate may translate into savings and may not. 

I'm looking for a good number to use for quick analysis (on properties where the LL is paying the water bill), on small buildings up to 10 units.In our SF rental we average about $600/yr, but I'm not sure how directly that translates to a couple units in one building.

I can translate from English BTL investing to US RE investing if you like.Send me an email and we can set up a time for a chat.John Corey