I assume pros are little maintenance, no cap ex for maybe at least a decade, and possible favorable loan terms from developers. 

I buy blend and extends for cash nationally where I can extend the lease or backfill.I buy at 10 cap rate or higher.

If the rent is $3,500/month and you have around $300,000 in total costs (purchase + rehab), you’re looking at around a 10% cap rate assuming financing works out well.

I'm under the impression that its ran similar to single family homes and like cap rates for the large multifamily.

Thanks for the reply :)  Are there rent caps in California? 

This can be cap ex to the building's common elements or cosmetic like a new lobby that you as a landlord may not view as a worthwhile investment but the owner occupants may.

The one percent and 2 percent rule ive never looked at ... cap rate is .. meh .. its there - what im most concerned with is the price of the home relative to comparables and cash on cash to start.   9)  I look  the other way if it is a multi unit that is not separately metered - thats always one of my criteria here in pgh as there are a lot of older homes and a good portion you wind up worrying about who will cover utilities.  

This is because they didn’t budget properly and rent wasn’t high enough to cover actual expenses (repairs and maintenance, cap ex, vacancy and loss, tenant damage and turnovers, etc don’t expect to have any money left over after all of these expenses are accounted for if the rent is less than $1,500/month). 

Also, the ability to export reports for partners or lenders would be a plus.Essential Data/Analytics: Reliable rent estimates, cap rates, cash-on-cash return, operating expenses (especially maintenance and CapEx), and local market trends like population growth or job market health are key for decision-making

If the location is an A but the tenant paying higher rent was a B or a C then replacing the location with an A tenant at slightly less rent in some cases you can actually increase the value.Example if you had an (A) location QSR but tenant was Burger King franchisee and they went out the Burger King might sell at 7 cap.