I like Okaloosa Island better because there is a cap on building height (6 stories) and all the complexes are directly on the beach.

But really a cap rate of 6-8% is more realistic for that area.

There may be a cap on rentals, a requirement to owner occupy for a period of time before being able to rent, etc etc etc.Vet your association!

Do you negotiate a cap on fees for a given time period?

They're calling it a Cap Rate 7.1% property.The fees are not insignificant- 2% of purchase price as an acquisition fee, 2% of equity (the realty mogul fee), 4.75% per year for property management and investment management.

And, in fact, most fixed price agreements have some cost plus aspects (like for unforeseen aspects), and (my favorite) I like to put a not to exceed (or what you may hear called a cap or upset price) on any cost plus agreement (just can't write a blank check unless you have some major trust, ling term working relationship or other leverage in my opinion)..

It yields around 100k in revenue with a cap rate of 8% in the first year which will eventually become a 15% cap rate property.  

Many are similar to what others have said.Regarding coming up with an offer amount, something you could do next is determine a CAP to use for that property.  

Having said that I use $100/door or 12% Cash on Cash Return, 1.3 or higher DCR, and a CAP rate near or above 8% to get my strike price. 

You don't even need to know what a cap rate is much less know how to calculate it.