Most banks will put a cap on your financing, that's why alternative lending exists.

Is there a cap ex rule of thumb to follow? 

As a rental at $750 it would be good at a total cost of $45K assuming a 50% expense ratio.If an investor had to pay $65K then he would have a cap rate under 7% at the above rent and expense rate.Good Luck.Bill

Did you and your investors determine a CAP rate you are aiming for in the investment?

Granted, there are deals to be had but they are few and far between (our current property has a cap rate of 9.4% and that is very good for the area). 

If you can lower operating expenses in an apartment by $3,000 a year (only $250/month) with a Cap Rate of 10%, then you've literally just created $30,000 in equity.

When I went into there was a cap rate/ROI that I hoped to achieve relative to the equity in the purchases.

There’s a cap to how high you can climb the corporate ladder, but my portfolio will grow forever, even after I die.

Most of the MFU deals I see around Miami have a cap rate of low 3s.

I did find a Cap Ex spreadsheet in there by Sam Tato that looks better than the example I gave above.Having said all that, it looks like you might have a good deal on your hands.