My question is 1 what determines it being a condo and 2 is there any way to purchase both units as one single family home

Give Ben Leybovich's blog post here a read, but even more so, read Brian Burkes comments on the blog.Your CAPEx reserve is not an operating expense, it is a reserve and is deducted from NOI.Instead of looking for a specific CAP rate which will get you in trouble, you should be carrying out a discounted cash flow analysis over your {initial} hold period and determine the IRR or MIRR ... use these to anchor your underwriting, then look at things like Cash-on-Cash return to help determine the composition (some might say, quality) of the return.Frank Gallnelli's "What Every Real Estate Investor Needs to Know About Cash Flow" is a good primer to get you started.  

@Shetal Gandhi - You need to determine what  a good deal in your market looks like.

Who determines the selling price of the property?

For this reason i decided to learn more about RE investing and determining my niche in this business.I do not plan investing outside of my country, since i like to succeed in here first.Hope to listen to your advices and appreciate yout comments

I thought we were going to end up needing to replace most of them, but Mark went through and looked at them and determined that most of them just needed the little post and wheelie bit that fits into the tops and bottoms of the doors.  

So check reviews for specific models if you determine you can handle the peak load demands. 

That will determine the market cap rates.

PLEASE NOTE: For purposes of determining the VA guaranty, lenders are instructed to reference only the One-Unit Limit column in the FHFA Table “Fannie Mae and Freddie Mac Maximum Loan Limits for Mortgages Acquired in Calendar year 2015 and Originated after 10/1/2011 or before 7/1/2007”.Here is a link to the VA site where they have the loan limits;http://www.benefits.va.gov/homeloans/purchaseco_lo...For 2015....FHA Basic standard mortgage limits are:Single - $271,050Duplex - $347,000Triplex - $419,425Fourplex - $521,250Fannie Mae/Freddie Mac standard mortgage limits are:Single - $417,000Duplex - $533,850Triplex - $645,300Fourplex - $801,950FHA Basic High Cost area limits are:Single - $625,500Duplex - $800,775Triplex - $967,950Fourplex - $1,202,925Fannie Mae/Freddie Mac High Cost are limits are the same as FHA for 2015:National Housing Act provides mortgage limits for Hawaii up to 150% of the new ceilings for 2015:FHA and Fannie Mae/Freddie Mac both are:Single - $938,520Duplex - $1,201,150Triplex - $1,451,925Fourplex - $1,804,375

If not, just take it as a cost of acquisition.What you have a septic inspection for is to determine if you need to REPLACE the septic!