This then flows into the 5+ units and owners price their properties at low cap rates expecting to get the higher price per door that the smaller properties are getting.

This is one of my favorite features of Bigger Pockets especially for asking specific questions.

I've ran just about every number I could have and this property is at a great price and generates some nice cash flow (COC of 25% and CAP of 12%).

If you can stay around the typical market cap rate (or beat it!)

Here is an example of a house I have bough from him:Purchase Price:                              $42,261KAssignment Fee:                             $11,700KRepairs:                                          $15,000Closing Cost Est:                             $1,500Holding Costs Before its Rented:    $1,000Total Investment:                             $71,461  House would Probably re-sell for 90K+ after repairsRental Income $1,300/Monthx12=  $15,600Property Taxes:                               $2,500Insurance:                                      $600Repairs and Maintenance:             $300Capital Expenditures:                     $500Net Income:                                   $11,700So without figuring on any vacancies its about a 16% cap rate, which I thought was decent.I am a beginner at this so not exactly comfortable going to the auction, but I want to learn the ins- and outs of the auctions so I can get even better rates of returns.  

I did deal analysis at BP, only less than $100 positive cashflow, cap rate 5.3%, the rent definitely doesn’t meet the 2% rule, actually only 0.95%.

-I am also because it is my first multifamily deal uncertain of how to analyze the property entirely, I understand basics of cap rate and some of the things but not sure how to create a strategy of buying the right property with the goal of longterm hold with 8-10% cap rate if its best to buy something that needs a little work to up it to the rate or if I should go after something that is already performing.Any feedback appreciated thank you!

I include utilities in rent, but have a cap writer in the contract that if utilities go above that, they pay for whatever above that pre-set number, so far so good

If you want to buy MF in a desirable part of town, you're looking at caps of 4-5%.  

When I first started buying in 2011 the area had outrageous cap rates.