There’s no universal answer, and it depends on a variety of factors, but in general the current national cap rate is above 5%.

I love Baylor University but not the rental market at this time.  

University student housing is the kind of thing that will weather a downturn.  

I accept that slack as the cost of doing business, since I don't want to kill myself doing this, and so far it's paid off handsomely with virtually no drama. 

Last year at this time you could buy them here all day out of MLS, after the hedge funds came in it was virtually impossible.Whats happening now is the brokers are intentionally listing them low to get interest knowing there will be a bidding war and they'll get their price.

But then, that's not why people wholesale.If you'd ask most wholesalers, at least ones  starting out, you'd realize they're trying to break into real estate because they have virtually no money and wholesaling is the current get-rich-quick-scheme that the gurus are pushing. 

The area has virtually nothing in terms of multifamily rentals, but seems to present opportunities to rent out additional properties on lots that have an extra structure on them (We would live in the main house, rental property would be a stone's throw away).  

This is for @Valerie Hiscoe, For this mock up I used Virtual Architect Instant Makeover.

From my experience there is no universally accepted tolerances.

Close as possible to downtown, hospitals and universities are prime areas to invest in.