Right now we are comparing each location and making connections out there. 

Compared to south beach where caps are around 4% not to bad.

Go compare cost of living in multiple areas and you'll see it's vastly different.

Compare that to my backyard in Provo where homes are $250,000 and rent is $1100 a month.

Surprised nobody has mentioned that you shouldn't be using a cap rate to determine your offer.This is a residential property since it's under 5 units and it's value is strictly based off comps.Look what other comparable 4plex's have sold for and then decide your offer based on that.It could very well be that you're just in an area where the price to rent ratios don't make sense.

THe prices are crazy compared to what we could rent them for

In announcing plans for the center earlier this year, they described the new operation’s objectives this way: “Modernizes the Army for the future… will integrate the future operational environment, threat and technologies to develop and deliver future force requirements, designing future force organizations, and delivering materiel capabilities.”The Futures Command center is expected to lead innovation for the Army’s top six modernization projects, including improvement to its tactical missile system, combat vehicles and helicopters, defense teams and weapons.Army officials indicated they were seeking a high-tech, creative culture for the location, rather than a traditionally structured Army post.

Trying to structure an offer to a seller with three options: cash, traditional financing and owner financing options.

While comparing investment opportunities an investor needs to assess risks associated and then expect a commensurate return.

My question is if buying points for a lower interest rate on a traditional-financing loan has any $ advantages for an investment property.