Should we factor in a conservative interest rate as there are fixed and floating interest rates.

That is obviously some sort of scare factor.

In your opinion, do you think it is safe and conservative if I were to factor 50% of gross rental for operating expenses?

Whether your unit is cute or not, or has granite countertops or formica, will not make any difference (at least in metro areas, it coule be a factor out in the toolies).

This doesn't even factor in the cost of the property, so could someone explain to this rookie how to correctly figure out the maximum purchase price of a commercial property?

This is a very vague question and can not be answered properly without knowing what area, what type of investment, what kind of risk factors, etc.For instance, a great cap rate for apartments in CA would be 6%, but would be terrible in Texas, Ohio, Illiniois, etc.

I don't believe the side money is factored into this.Taxes in 07 were $4090I am a first time buyer so I don’t know if that helps at all.

If you factor inflation out, real estate prices have been flat for the last 100+ years.Have a look at this post:http://forums.biggerpockets.com/viewtopic.php?

I know this depends on a LOT of different factors etc.

Indeed, there may be other factors.