Lastly I see you projecting a cap rate at resale or refi of 5% but the broker lists the market cap rate of 7.3%.

I absolutely will if I pursue this deal,@Jaysen Medhurst1) I know the cap rate I am willing to play at2) 5.2% is a cap rate I would expect on a class-A property, but not on a class-C. 

Still has a cap to it.

If you know your expenses and the internet will give you a cap rate range, grab your calculator and do some work !

I can buy a multifamily unit that has a cap of 8.5% If I pay cash.

That is a cap rate of 13 which is excellent.  

Yes, a cap rate measures what the market will pay for your NOI. 

You can obtain a cap rate from brokers in the area.

Net income before non cash items is roughly $110M, that is a cap rate of roughly 2% cap rate- horrible.

I agree with Ned, RE investors and even appraisers use a CAP Rate as the quick and dirty way, by definition, it's very difficult for a RE investor to get a true CAP Rate as it is based on alternative investments to compare to, or opportunity costs, which are hard to nail down for RE investors.....unless you have other deals on the table to compare to.