BC has a cap on annual rent increases.

Nothing in San Francisco has a cap rate of 8.5%, especially with a 10% mgmt fee baked in.

I'm actually interested in this question too, so would like to hear others input...perhaps I dont know enough about this residential commercial space, but sofar dont know how a cap rate wouldn't be one important metric to consider (among others), especially if speaking with a lender.Just a 3rd party observation to the discussion. 

Well, your internet provider has a cap of 1 tb (1,000 gb).

Unfortunately, most seasoned realtors don’t even know how to calculate a cap rate.

At a Cap Rate valuation the equity would be incredible, but at the residential market value it’s just okay.

It basically adds in inflation which encourages more construction which keeps a cap on rents.If less people buy, less building and we're back to the old-fashioned method of watching rents rise. 

If you’re buying with cash you can assume a cap rate between 4-6% depending on the area here in Phoenix. 

I just had a client lose in a multiple offer situation where the other buyer offered a lifetime lease to the current tenants with a cap on monthly rent.

A cap rate, IRR, or cash on cash return.