I see properties above the 1% rule in these neighborhoods (10% cap rate or higher).

So for instance if the seller is saying a 7 cap but then taxes go up 20,000 you are not buying a 7 cap but much lower with the higher cost factored in.

Analyze net cash flow including taxes, MIP, upcoming cap ex expenses, insurance, and P&I.

Ensure they have not placed a cap on the number of rentals in the building and if there is, make sure the current number of rentals are significantly below that figure.

If you really want to get him going start talking/asking about CAP rates!!

Fee 8% 2826.24 Lawn Maintenance 0 Maintenance 75 3600 Total Expenses   28606.24     Net Income 6721.76 LTV 80/20 Purchase Price   300000 CAP X $3,500 p/ 14000 Down Payment   60000 Reserves   0 All-In Cash Down   74000 Loan Amount   240000 Interest Rate   3.75 Term   30 Years Annual Payment   13332     Return on Cash Invested   0.090835

Thank you all for the information.I am looking for multi unit apartment building with good CAP rate for around 200k - 300k.near to Akron university.What is the CAP rate going around in akron area.? 

The typical cap rate for MFP in North Carolina is around 10%.

My parks have about a 28 cap rate now so it was well worth it.

Taxes, insurance, vacancy, repairs, CapEx, shared utilities, lawn care, snow removal...At the numbers you provided, you are looking at a potential Cap Rate of 11% (assuming 50% of Gross Scheduled Rent goes towards expenses).