My question would be is a 6 cap the going rate in the area for that building.

The higher the cap rate, the more risk involved in the building. 

To maximize your investment, use financing options like FHA or conventional loans, analyze deals based on cash flow and cap rates, and network with local investors through REI meetups and BiggerPockets.Good luck!

.$140k offer8% interest rate20% down8% management fee5% vacancy5% maintenance 5% cap exI haven't gotten insurance costs yet but it's been suggested that I plan for $2k per year. 

Both will come in about -$14-16K annually, have a cap rate of 3.7%. 

Rent, Expenses, NOI, Cash Flow, COCR, Cap Rate, Market cap rate. 

Experienced investors typically value properties like yours by analyzing cap rates, cash-on-cash returns, and income growth potential.

Are you reserving for cap ex, maintenance & vacancy?

For the most part, due to interest rates, breaking the 1% cap rate still won't provide positive return after expenses.

., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?