i think cap rates are a good evaluation method , but you still want to use a few others . people must remember these are guidelines and not gospel . i use a cap rate in our market as a starting point .

I'm an investor in Harwich and I've recently organized a Cape Cod REIA.  

The nicest areas in PDX(condos in NW PDX) are capping at 4 if you can believe that.Obviously the price difference between a cap of 6 and 8 is huge.The only thing that makes sense from number standpoint is a brand new duplex where you know hat you will probably get in rent and you know taxes and insurance, and there shouldn't be much maintenance or capex since the units are new.

Built in 1965. 4 units 2 / 1 going for 550 a month 8 units are 1 / 1 for 450 and 100% occupied with a cap rate of 20.18%.Gross income $70,800Operating expenses $22,348  Net operating income $48,451                                                              Monthly income 5800  I just use the 50% rule for some quick math but that's $2,900 for expenses and loan payments if I could make 600 to $700 a month I'll be happy but thats also why I need help with the loan.All tenants are on government Aid so rent is paid continuously My first thought was to offer 232,000 but I feel like that's too strong of an offer.

Is there a cap on the interest rate on the loan?

I just had a roofer check a leak back there and the roof doesn't have the proper pitch to drain water...it's essentially flat and the house is a Cape Cod so water has made a mess of things over the years.

There is nothing wrong with the idea if having a single rental as long as it cash flows including a cap ex budget but if you aren't certian or at least reasonably convinced that will continue you should either sell or set aside a chunk of cashflow to cover unexpected expenses. 

KW has a cap limit beyond you keep all of it.

It will specify whether taxes can go up unlimited or may have a % cap.

They put a cap of $900,000, but may be willing to lift it since the LTV now is ~50%.Our main goal is to keep growing our portfolio (looking for a 20-50 unit building now).