So correct me if I am wrong but doesn't an increase in rents decrease the cap rate since the property is more stable with a wider spread between gross income and the operating expenses

A down payment of at least 10% is advisable unless you have strong cash flow from stable income sources.

The city's strong rental market driven by a growing population ensures a steady income stream.

It appears they calculate gross ROI based on gross income divided by property price.

Does he have to report the income he received this past year and declare it a rental event though he would like to move back in eventually?

We plan to convert the sale proceeds into multiple properties to create passive income. 

High crime + low income = Poor tenants to choose from.  

I've posted extensively about coastal Oregon vacation rentals and their challenges and production potential, typically a strong STR will generate roughly 10% of valuation in gross annual income. 

Don't forget about loss of income/rent...that being said this is a very broad question and I'm not certain if you think you have too much coverage or it costs too much or both...

It connects my airbnb and VRBO calendars, offers automated messaging, smart lock integration, cleaning calendar/reminders, and offers pretty good income reports.