What that'll get you in the Cleveland area right now is a lower C-D class duplex or a lower C class single family home.

Every time I calculate cap rate using ACTUAL income and expense, it is always lower than the MLS listed cap rate.

You can afford to invest in fixer uppers or even negotiate a lower price since you can put a larger down-payment but that all depends on where you are investing. 

I can find it in SFR's in the lower rated school districts, otherwise it's tough.  

But also where the tenants pay their own electric, if I give them a benefit of lower electric bill with a slight rent increase to offset it, would that be good?

Comparing these terms to the best financing I've found through a bank ($320k loan, 5.5% fixed for 10 years then refinance, amortized over 25), with same purchase price and down payment, results in a lower monthly payment by $315/mo, plus my principal balance after 10 years of payments through bank financing would be $240,000, compared to the $180,000 balloon that the seller wants at year 10. 

Sometimes you can just offer lower rent or possibly no down payment.

Re laundry money, i never include this in my calculation - i simply look at it as bonus income. your vacancy at 3% sounds low, again not knowing the location its hard to sell. 5% would be my lower estimate in high demand location and proven 100% occupancy in the last 2-3 years.Repairs and maintenance, unless the property was recently renovated top to bottom or you would renew the large items like roofs, HVAC, water heaters etc 5% and 4$ is tight. 

Comparing these terms to the best financing I've found through a bank ($320k loan, 5.5% fixed for 10 years then refinance, amortized over 25), with same purchase price and down payment, results in a lower monthly payment by $315/mo, plus my principal balance after 10 years of payments through bank financing would be $240,000, compared to the $180,000 balloon that the seller wants at year 10.

Since they export very little steel to the US they could simply lower the price to other markets even lower.