I also agree with the FHA vs VA with the further assumption that we will be 5 years down the road before we move forward to the next property and we obtain a single door Single Family as the first.

Would it be proper to compare the loan constant against (Cap Rate + Appreciation assumption) instead? 

These are just my assumptions, so confirming it with your CPA is a must.

Like anything else , I’m sure there are exceptions to these assumptions and will be curious to see what other BPers have to say.

Could be the numbers are estimated based on assumptions rather than actual results2.

My assumption is those units will take anywhere from an additional 24-36 months to complete so slightly over a 3 year plan but once complete I can assess cashflow on the bigger apartment and determine if it will make sense to sell off my current units and pay a hefty amount down on the note or if I will have to do another value add complex to hit my cash flow goal. 

It sounds like a costly transition that would take a long time to recapture, but that is just an assumption, an analysis would tell the story.

A quick way to gauge cap rate is to see what others have sold around your area - make assumptions based on occupancy and rent rent to get a full gross income picture.

You also need to look at the comps as well to validate your assumptions.

It's basically one big math problem where you have to use assumptions (like how long it will take you to rehab the home, how much will it cost, etc) to come up with an answer.