I'm able to calculate a property value if I input a CAP rate on this NOI.

It's tough determining value using comps on multi units (2-4 units to be specific).Now YOU the investor should do a cap rate analysis to determine the value to YOU.

There is so much competition but you should still be able to find one or two properties the goal of which is to produce a cap rate of 7%+.  

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.

What I hear often is "i'm investing out of state for higher cap rates" without fully understanding what a cap rate is and what role the cap rate variable plays into their overall return calculation.

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?

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.

I've come across some that have to be owner occupied as the HOA either doesn't allow rentals or has a cap on how many there can be and that cap had already been reached.

Learn the true ins and outs of this business before you spend a dime.Thanks Jon,He currently owns 8 condo units which have a cap rate of 6.85%, $400 per door cash flow.

You can also value them with a CAP Rate, but because the homes represent more work, maintenance, cost and trouble, because they're not holding their value, and because they are generally not financeable, you do not want to buy them at the same CAP Rate as you would the Park.