NYC has a CAP on Property Taxes, especially for certain Residential Properties.

You also have a cap on your income. 

Ideally, a cap rate of at least 8% would be great, however, cash flow isn't as important as principal pay-down and minimal headaches with managing the property.  

There are neighborhoods that push hard against it and there is a cap on the areas where the map shows it is allowed, but the cap isnt close to being met (around 60%) so the market is still open for investors and as the STR horror stories get dispelled, I believe that many other areas will become more STR friendly. 

My comments are based on your analysis on Bigger Pockets.I don't like 2 houses on one lot because it ultimately has to be sold that way (reducing the value) or try to sub divide.You claim a cap rate of less than 2% and less than your cost of money.  

There is a cap on interest accruals on tax sale overbids. 

@Michael Yan I don't want to buy at that low a cap rate.

The reason has to do with the generally high tax assessments in these areas that put a cap on appreciation. 

And I would expect a pretty nice cap rate on the homes since they are embedded within a park.If you use a cap rate to determine the park value, keep in mind that the operating expenses of a park are lower than SFHs.

It was my understanding that when you figure out the cost on commercial property using a cap rate you don't do the math with what it COULD be making you do the math on what it is making now.