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. 

Might not be a bad idea to balance out your higher risk properties with a few that are much lower risk.