That was my pride showing there and it almost cost me $200,000.If you can negotiate a NOI correction why can't you negotiate a cap rate closer to market?

Although it's my experience that you don't always collect all of that (particularly on moveouts and evictions), including that income totally swings the numbers into the "jump on it" category - a cap rate of nearly 17.

If you paid cash you would expext a cap rate profit not per door.  

My question is as follows: does MLS (or any other source) offer a capability to do a search for properties that have had a high number of list price reductions.  

So a seller uses a cap rate to charge more for a property?

A CAP rate is the ratio of the operating cashflow (money leftover after you pay for everything other than principal and interest) over the purchase price. 

This has been the game forever - understand this :)Talk to your bank about a "cap".

However, a cap rate can be an interesting piece of information to have for the purpose of structuring one's deal with positive leverage (minimally with a spread of 2 points).

If your interest rate is 7%- you will probably need a CAP rate of about 8.5 or 9 to have the park make some money after expenses and debt service... are you following this?

Example: a 4-plex for $79,000 with a cap rate of 13%.