We are using the VA loan and have a cap of $417K.  

I have a couple B-grade, multi-tenant commercial listings returning a cap rate in the high 7% range, which is a bit better than the multi-family or single-family rental returns of today's market.

There was fierce competition on the property, which is justified because the most conservative NOI is around $2850 giving it a CAP rate of 8.5% and a nice COC return around 10% - 16% depending on how expensive lawn/snow/water/common area utilities are for the year. 

If that is true, then a cap rate of 7 would value the property at $84k.

Is there a cap?

Never buy a SFH on a cap rate!

You are excited because you can use this money to buy and fix a 4-unit building and it will produce cashflow of $2,000/month or a cap rate of 10%.Cap rate of 10% is higher than 5% interest so this is a deal, right?

However, I am enamoured with the idea of having foreign property and a "I think" I am comfortable with the concept of finding a capable property management company to oversee things.

Same holds if you plan to use a {capped} variable rate mortgage product (2.6 -3.1% at most of the banks) - you must still qualify at the 5yr fixed w/ 25-yr amortization.

Due to the restriction in air flow it would create we did not reinstall it but left the furnace without a filter to prevent damage to the furnace.PLUMBINGThere is a cast iron sewer or drain pipe on the floor of the South side of the basement, there is an open clean out missing a cap or covering on this pipe.The drain below the bath tub was leaking/dripping during today's inspection.The service wire to the water heater is not enclosed in conduit or a protective covering to guard against accidental damage to the wiring or its sheathing.The water heater TPR valve is missing the extension pipe to the floor for safety.ELECTRICALThe house has some of the old knob and tube style wiring.