hey Gary thanks for the input.After recrunching the numbers a more realistic NOI would be 16kWith a cap rate of 26% I probably would only go 45k max on the 2 homes which would give me a CAP of 35% 7/10 units are occupied.

Can your property taxes go up as fast as the property appreciates, or is there a cap?

I used this number, a cap rate of 13%, and the improvements/repairs estimate of $6550, and including my closing costs and tax hit, came up with a sale price of $73,480 where I wouldn't care either way if he buys it.

Estimates with my contractor come to an additional $45,000 to fully renovate the building top to bottom inside and out.My question: I’ve got a cap rate on the property that currently stands at about 14%.What do I do next?

Dave,First, you do not "select" a cap rate.

For a 10% CAP Rate the sales price must be $1,28 million, with $1,7 million its only 7.5% CAP.Other with the assumable mortgage of $1,175 million at 6%, now you have a CAP Rate of 10.9%, a adequate downpayment of $225k from the buyer and you have a max price of $1,4 million, not higher and depending on the condition in- and outside.Thats my statement with the know informations.Please forget these 95% occupancy for the next 3 month it´s only a promotional tactical, even given for 3 years it´s not $300k worth.

A property I bought that I keep talking about had a cap rate of 8% and an interest rate of 9%.

Anyways the corporate housing project is going at a cap rate of 11%.

A  cap rate on a property out of line with the market is usually a red flag.Finally, trust your seller's broker, but verify everything.

There must be plenty of places to invest in multifamily property with a purchase price of $4million and if you put a million down and finance the $3million at 6% with a CAP rate of 10% you would get a cashflow of $220,000 or 22% on your money.