Cap rate does not apply to a 4 unit, it is only applicable to 5 units and greater. 

You have to figure cap-ex, insurance, PM (unless you want to manage the rest of your life) time value of  money, maintanence, vacancy, turn over cost, and on and on.

About 20k net on 300k, ( about 7% net cap) not good.

Why I understand the factors that weigh into CAP rate, the key for me is the seller financing and potential to get into this for 5-10k-20k vice 20-25% down. 

They are saying because the property is a rental they only use a cap rate to define its worth not what it could sell for so they are only giving it a worth of 109k. 

@Mukul Patel9% cap rate is not bad at all.

The only times I can think of where a HELOC with $0 balance will impact anything is overlays and as a "financed property" that counts towards the Fannie cap of 10.When used as a down payment (or otherwise drawn upon), the new payment with the new balance will be included in DTI.

I have a property which I got under contract for 65-70% appraised value while being 93% occupied and 10.5% CAP rate in a solid B area with no deferred maintenance.

And then I've done enough rehabs to know the cost range to expect as well as cap-ex costs. 

Also, since the housing crunch my bank no longer caps rates like they used to.