@Kyle Garand prices should be determined by rents; whether something is "above what market value should be" is really a function of what you're paying (the investment) vs. what you're getting back (the return), and whether that amount (as a percentage) is high enough to justify the risk and aggravation of doing the investment.Generally speaking, if you invest in a better area, prices will be higher, and returns lower, because the risk is lower (better tenants and more able to hold its value).If you're living there, you'll also need to consider where you personally want to live (personal use factor), but I also recommend people analyze a house hack as if they will someday move out because it's always nice to have that option.Someday you may want to move out of the owner unit and rent it out, i.e., make it a pure rental/investment property.

While they do bring in larger yield, its more work and you have to have your home furnished with full functioning features as these guests just expect to show up with a suitcase. 

The building is in rough shape but it current functions fine for the current business that’s in there.

Take a bunch of time and use the search function on your questions.

By operating I mean make sure house functions like heat system, water, kitchen, bathroom, bedrooms are ready to be used and lived in.

Despite what most people think, cap rates are less of a function of revenue/return are but instead an assessment of risk.

Risk is made up of many items including eviction rates, tenant quality (very much a function of vacancy rates), vacancy rates, etc.What this really means it that different markets have different strengths and weaknesses.  

BP has a purchase calculator that I believe has both functions (cash flow and appreciation). 

Another way to structure a deal is to have the seller pay the closing costs....BUT in this robust market, that is highly unlikely unless you can pay above the asking price and the property appraises.

@Kyle Kinkead likes others have and will say, shop around local and create relationships with banks where you want to do business.For your operating accounts and savings, I am a big fan of Chase since they seem to be everywhere that I work but they also have great online functionality.