@Geordy Rostad not super set in what escalation clause is so excuse me if I’m wrong but is that when there is essentially a cap a buyer can set they will pay X amount and if someone offers more, they will pay More than that amount also?

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

For example, a 10-unit building rented for $600/mo in a B area (say at a cap rate of 5%, and assuming 50% expense ratio) is valued at $720,000 today.

Good to know that the tenants have a cap and won't have to make a decision regarding rent increase.A big question that came to my mind was: Once I do all the paperwork and requirements, can property management take over, or do they have to fill out their own paperwork as well?

In my local market, a multi-families in our A or B parts of town with a Cap rate of 5.5% will usually fly off the market in a few days, often with multiple offers.

With a cap rate around 7% (mentioned optimistically by other poster), the price range you're looking at is probably close to the top unless rents go up.

The price to be paid is negotiable a seller may want half the expected price to give the buyer the right to purchase at any time over the year, the option price might be $50.00 and that is reasonable, it might be reasonable to agree to an option price of $10.00 if the seller only needs to give notice of another offer, which might be done with a limited option.In real estate, the future expected increases in value are determined, that amount is brought back to a present value using a cap rate applicable to the buyer as the basis for the offer to the seller.

Keep in mind commercial properties are evaluated based off of their NOI and a CAP rate.

That is a cap rate of 13 which is excellent.  

For one, I am trying to buy a bigger house and put my current residence on rent, so showing this in my personal credit will limit my ability of lending and secondly I would like to roll this money to increase my Rental portfolio, and again, with what shows in my current W2, there would be a cap on how much I will be able to finance.