You get a Capitalization Rate (CAP Rate), which equals your annualized return by dividing the Net Operating Income (you had gross in your narrative) by the purchase price.

I noticed that its mostly for fairly large multifamily properties, like 100+ units.All other things being equal, at what property valualtion do you think it starts becoming a more reasonable approach?

Mitch already touched on it but this is a good example of "correlation does not equal causation".

Chances are this is NO deal property as the X will want their fair share and a fair market appraisal will need to be done and the equity split equally.   

Time equals money, etc etc. 

And equally for the buyer, if you want to renovate and refinance or cash out, wouldn't you have to pay off the entire mortgage at that point and the bank would know it was always the buyer paying off and not the seller?

All things being equal.  

@Kyle Carter "Section 8 sometimes can bring in slightly higher rents, with that the NOI goes up (all things equal)."

I'm following up with Vitality hopefully in the next couple of days and will be sure to pick his brain the best i can.

Unclear if all co-ops are viewed equally.