It is like anything else where you have to take the good with the bad and just be careful.The common thread you should be recognizing in all the responses so far is that you have to have a good team on the ground.

You will start to recognize what normal retail prices are for houses in different parts of your market.  

You just need to have someone that knows how to talk to listing agents and recognize opportunities.Again, I'm not sure what other agents advertise for services, but these are things we do and what I would look for in an agent.

People will see your genuine intentions right away and good things will come to you.

I don't own any apartment complexes, but I have learned that it is a whole different ball game that requires a great team, and knowledge to recognize future potential income.

Recognize that RE moves in cycles, and now may not be the best time for you to be a buyer.Either way, you need to zig while everyone is zaging. 

Realtors f-cking love me because I can do that for owner occupants, and I genuinely believe what I present (& put my money where my mouth is as a homeowner), for their young first time homebuyers that are super cynical. 

Hi Bob,Judging by your post count and direct comments on cap rates I'm assuming your question is more of a "defend your position" question than a genuine question?

@Laura Richards, do you know off the top of your head if Louisiana recognizes land trusts?

I also see a few Selling Costs that i'm not sure when and how the payments would be made(Particularly Home warranty and Termite letter.SELLING COSTS:Selling Price                      $130,000.00 Commission To Agents    ($7,800.00)**Buyer Home Warranty      ($500.00) **Buyer Termite Letter         ($50.00)Buyer's Closing Costs      ($7,800.00)Seller's Closing Costs      ($200.00)Total:$113,650.00I recognize that these are "selling costs" but do I initially request the loan amount to cover my potential  fees?