NOI is multiplied by a cap rate that fluctuates under market conditions.This formula renders how the asset is 'actually doing' in the current market.

.* The note must have a fixed interest rate for five years, and at the end of five years the interest rate can increase no more than two points per year with a cap of six points above whatever you started at.

You would have to see what other multis in the area are yielding for a cap rate.

Also the list price is 289,000 if the units are rented for the $495 that I found it gives a cap rate of 12% that's pretty good for this area.

The seller has guaranteed that they will pay rent until the space is leased out with a cap of receiving rent ending at 12 months. 

. ;-)   But it's NOT a cap rate, NOR a crap rate...mmmm  can we call it a de Hart rate? 

I wouldn't call them investor friendly and they don't give any discount for investor only agent they have a capping structure that you paid 18,000 a year in commission and then anything after that you keep a hundred percent which if you sell multiple homes a yeaf it's totally worth it.

In podcast 163, Bill Allen mentioned that there is a cap on how much total debt a veteran can take on.

All a cap rate tells you is what the market PAID for a NOI at a certain time in a certain place for a certain property type. 

It's pretty much having a cap rate of at least 37%  and then doing the ladder effect with all the money made off the rentals and put them in more rentals.