Don't concern yourself with the increase over time , you will only set your self up for dissapointment .3.

Most have a tenant rep broker they use and connect you up with them.Cap rate is usually tied to location ( urban,suburban,rural), location and quality of the tenants ( national, regional, mom and pop), and terms of the lease ( primary lease term in years, level of lease guarantee, rental increases, any termination rights, disclosure of sales, restrictive use rights, co-tenant anchor clauses,etc.).You need a void analysis from a landlord rep leasing broker.

If you can cover that $155/month out of your personal budget and rental income from the other half of the duplex, you might decide it makes more sense to keep your first property running at a small loss for now and reap the other benefits of real estate: principle pay down, depreciation, future rent increases, etc.Especially when you look at what it'd cost you to sell it at this point. 

It sounds like the rents are too low maybe or if they can't be increased I would walk away.$500 per month can get eaten up pretty quickly  by capEx and miscellaneous maintenance.  

Would you increase rent to compensate for shorter lease term?

Being that you’re an out of state investor, I would look for turnkey, 1%, B class multifamily property with some value-add potential whether it be through rent increases due to it being under managed or small upgrades that you can complete during the next make ready to increase rents.

I have always read to look for that first deal around 80-140k maximum and I have seen increasingly less and less houses that meet the requirements I need.

I have a contract on this property ( Buy - Rent - Hold) - FloridaTownhouse - 2 beds 3 baths ( great location from rental perspective)1,320 sqftHOA 225Taxes - 2900CASH PURCHASEExisting Tenant Rent - 1625 (Market rent 1675 -1700)Since tenant has been there for long, no plans to increase the rent until October (when the lease ends).Thank youManniNJ

., most standard leases have a clause about not running a business out of the home.

What unites all of them is a phenomenal economic growth phase (for midwest standards anyway) and haveing a large body of fresh water just down on the beach.