. - 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.

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.   

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

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

@Aly Vizcarra mentioned that rapport can be a good thing, but transferring local knowledge used in helping to find a home to live in  doesn't necessarily translate to helping investors 100 miles away. 

Yes, prices are high, cap rates are low, but roughly translated, that indicates very low risk.

This translates into making offers sometimes over ask because the other buyers will eat you alive at ask, or making offers without contingencies or choosing when not to give right to cure or having the advantage of a large sum for earnest money or a blitz closing (Thanks @Jason Dominski!)

Most Condo HOAs are well-over $300/month because there is more common area and possibly a gate, but if you can translate those amenities into a $300+ increase in monthly rent, relative to a nearby SFR, then I guess it's not that bad. 

You can translate that last phrase as 'you may be hard pressed to execute' in your new endeavor. 

I have heard so many different perspectives on how to save for reserves my head is spinning, so if you don't mind qualifying your strategy I would really appreciate it.My plan was to do my own maintenance as I've been subcontracting for a friend that past four years and have a ton of valuable experience helping him do odd jobs that translate well to rentals, so I am not sure how much I would need to save for maintenance in that scenario.