Buying at my price will give me a CAP Rate of around 6% which is what I aim for in a deal2.

Let's assume a cap rate of 6% meaning NOI = $48K. 

Which one do you think you are looking at when someone quotes you a cap rate?  

If you want to use other peoples money to buy real estate it needs to be a commercial asset with a cap rate 

If you can get rent roll to $5,500/month (increase of $700 spread across all units), and assume a cap rate of 6.5% at sale this translates into close to $130,000 in value add prior to list.

@Tom DunnWhile it will put a cap on competition in that township I’m not sure rental prices will go up much higher than the neighboring areas as most renters are just looking at the house and the price tag.

I’m really going to spitball this, but let’s say that you have something you can do a cash out refinance on, but there’s a cap of 80% of value minus payoff for what you will net in liquidity to then redeploy.

Syndication is much more effective with commercial lending and a cap rate situation. 

So if a CAP rate helps indicate the rate of return that investors can expect to generate on an investment property why would the lower the rate of return be better? 

Saw a cap rate of 12.0% online @ caprateindex.com but 12% seems high.