Owner said they'd sell it at $250k.The price seems pretty high when I compare to the rental properties I've bought.

@Skyler Flintall the reason we don't take financing into account with cap rates is that (in theory) the cap rate lets you compare the investment returns between dissimilar investments.

Then I split the remainder with my broker.If we sometimes sound harsh about not wanting to invest a ton of time with a new investor who needs a lot of hand holding, now you know why - and now you also know why about 85% of new real estate licensees are our of the business within 5 years.

Probably can't go wrong in either area, though I'd say the Raleigh area is probably your safer investment as it's not really dependent on tourism at all compared to Orlando.If you want more cashflow you'll probably be better with parts of Raleigh or Durham, whereas Morrisville, Apex & Cary tend to be better with appreciation... but it does depend on location, and the particular deal.

It's separated into two buildings, which are comparable in size and take up a good chunk of a city block.

Just call around and see what other banks have to compare.  

The average rents for comparable properties was $1,368The average sq ft was ~1100Most properties were 2/1's; most did not have a backyardAll properties had to mid-level rehab, some are very high-end and could be considered outliersAnalysis can be found at this spreadsheet. 

Just explain to them what you are looking to achieve and you should be able to find a few to compare. 

You have to look at population growth, diversity of employers in the area etc...Other things to consider ... harsh weather is harder on properties.  

With student housing, expect a higher expense ratio compare to regular apartment communities.