I'm looking at the issues and risks for buying more rentals as investment properties:Cons:-Difficult to get your money out without capital gains.

I am in Indiana and it is notoriously difficult to pass the state part.

I am talking about spendable cash and limiting exposure to tenants and cap ex. 

Sometimes it can blend higher over time with rental increases or buying bigger type properties where the cap rate purchase is higher.  

Hi BP folks,Lets say I like to make a deal on MF unit that have cap rate of 8% and If qualified for Freddie Mac loan that will let me have 75% LTV but then can I have the remaining 25% from hard money lender (but non-recourse if possible ?

Cap rates have some flaws, but they are one of the good measurements of real estate return.It is fair to include closings costs into the purchase price, to determine your cap rate. 

Is the area difficult to do construction in?

Also, investing 3 or more hours away can be quite difficult/stressful if you've never done it before.  

However, without going into details, I would recommend breaking down the expenses to make sure you have allocated all the expense needed such as management fees (even if you do the management yourself), cap ex, vacancy factors, etc... 

You can find houses in some cities with great cap rates for low cost of property 30k+ with rental rates from $700 up.