@Taylor Shapiro That seems like some ways from both 7 or 10%.The article here also suggest a recent walmart buy in Columbus GA at a cap rateof 4.68% - slightly variant space (retail) from apartments but quite a difference.http://www.globest.com/sites/jenniferleclaire/2016...

I have a lead on a multifamily in Holyoke, but I am struggling to settle on a CAP Rate to value the property.

It could become expensive unless there's a cap, right?

If someone is giving you a "cap" rate number you can pretty much assume they don't know what they are talking about and hope you don't either.Cap rate = Crap provider.http://www.msn.com/en-us/money/markets/california-surpasses-france-as-worlds-6th-largest-economy/ar-AAhg7QA?

It sounds like you overpaid for it at time of purchase.I would say that this would pretty much be a loss for a lot of years.This is a cap rate of <4% assuming the value is what you paid for it($325k).

I have a cap rate study that CBRE puts out twice a year that shows what cap rates properties are trading for in many of the larger urban and suburban markets.  

The moderate sized properties will be managed by either an in house property management group that is a General Partner, or an outside property management company contracted for service on the specific property.Market – Target markets will include Charlotte, NC, Raleigh-Durham, DFW, Knoxville, Nashville, and Johnson City TN, specifically around public education institutions that have pent up demand for viable student housing.Criteria – I will select properties that can be acquired with a 65% LTV with a cap rate of 5.6 to 10% (based on size of acquisition and financing in place) cash flow sufficient to generate a minimum cash on cash return of 11%.

this question wasn't on any particular property. it was just a question i knew i'd run into sooner or later. it came upon me when i saw this FSBO trying to seller her lot for 1.2mm when the property across the street has a building on it (same lot size) and generates an NOI of 6k per month or 72k per year so at a cap of 8%, that income producing property is at 900k.

Or is there a cap on the number of residents per unit? 

If so, adding you now would technically only "bring you in" at the current value, not the previous sales price I believe, so the current "spread would still be a cap gains issue for your parents.