I’ve been wondering that same thing.Seems to me when comparing candidate investments, why would I pay more for an investment with risk and work (5% Cap multifamily), than a risk-free passive investment (5% CD or T-Bill).Note that going from a cap rate of 5% to 10% is a 50% drop in price…that’s significant…easy to see why a seller isn’t willing to give a higher return.I’ve asked the question before and gotten answers like it’s because investor borrowing costs vary, and you must consider future rent growth and appreciation … I guess if you have low borrowing costs and are optimistic about the future a 5% cap rate makes sense.

It's going to depend on what type of loan you're planning on getting, and fees vary from lender to lender...same with title fees.

Depending on how much of rehab you are planning to do to the property some it might be a wise decision to go out there and spend sometime and take care of those rehabs yourself before handing it out to a PM.

The answer depends upon how your entities (if any) are set up.

The interest rate is between 7.95% and 9.95% depending on credit score.

It varies wildly by state, county and city. 

Similar to Brenna here, but it does largely depend. 

The timeframe depends on the deal struck between both parties and the seller's goals. 

The only thing I would say is in 10 yrs I think you would have more than 25-20% appreciation.. esp in that area.. so might be worth more plus rents continue to go way up so both are great options, just depends if you want hassle of having tenants or want cash now?

In terms of the formula, it depends on the neighborhood and property type, and yes, you can make it work.