What are the cap rates like in your area?

If you don’t know Saint Paul just passed a 3% rent cap and Minneapolis passed it so the local government can implement a rent control in the future.

Cap rates are terribly compressed because rents are generally pretty sticky and lag behind real estate prices.

Here’s one that might throw you for a loop - Reversion Cap Rate.

In situations such as this, if it's a multi-family, an appraiser might use Gross Rent Multiplier and/or CAP rate and compare to other large multi-family properties in the town/city/area code. 

There are multiple ways to come up with a cap rate, so be sure to always ask how it was calculated.

And your repairs will likely (again, likely not definitely) be much less than for older homes.Knowing what I know, I would probably put 200/mo for repairs and cap ex and 100/mo for vacancy/collections and you should be about right - at least for the next 5 to 7 years.

Repairs/cap ex of $75 is way too low.  

You'd be lucky to buy one for a 4 cap, and your financing cost is going to be higher than that.

New construction of homes will continue to decline, squeezing supply even further, and this will compress caps and place upward pressure on rents coming out of the storm.