At least as it relates to buying SFR's as cash flow vehicles.. you may want to think about small Multi because those will generally always sell for a cap rate if rents increase your value goes up... but you will hold value better in the mid west markets Brie may want to speak to that I think that is what she buys in small multi's  cash flow is better generally and values hold and sell at cash flow numbers. 

There is a cap to how many loans you can have.

I have a cape style home with two bedrooms upstairs with slanted ceilings.  

How do you report a cap rate as you do not control the sales price?  

Most of the B class SFR in Houston on the market is closer to a 6.5% cap rate (if you want to attach a cap rate to SFR).Have you considered other commercial real estate that would be more passive than multifamily as an investment strategy?

From your experience, are most investors buying residential packages pricing properties at the market value  or are you buying them based on a cap rate based on the rent and expenses? 

If the seller is asking too much for the property then one of the tools you can do to determine if the value fits your investment criteria is a reverse cash flow analysis, otherwise known as a discounted cash flow analysis, to see if the purchase price makes sense, especially if your using a cap rate as your benchmark.

I assume a cap rate worse then I purchased for safety.Thats just my own touch, not HARD rule lol. 

Your value of your house doesn't come from zillow... it comes from comps, or as an investment property, it's valued at a cap rate, meaning how much money it makes.

At face value, this looks like it could have a CAP rate of .27%.It is a 2 BR/1BA w/bonus room and central air.Let me know your thoughts/suggestions.Thanks.