Any deal with upside potential (expense reduction, renovations to drive revenue, undermanaged property, etc) the in-place cap rate may hold very little relevance to the deal.Per your follow-on question about generating higher returns: you are 100% right.  

Ok, well here is the issue with using those numbers for projecting forward. 

We are currently acquiring small new build multifamily BTR projects that fit perfectly with a long term net worth growth mindset. 

. - Meaning, take your time with this big project.

Don't just focus on the after-repair value (ARV) - that's pure speculation until the project is actually completed and sold.🛑 Unrealistic ROIBeware of deals promising excessively high returns without proper collateral or penalties.

It’s the simplest way to get a feel of what it is like to be a landlord without going through the hassle of managing rehab projects. 

Rent projection is pretty decent as well for a new build right around the $2300/mo currently.

No doubt they will alert you of information that you did not have but will help you in project 1.

The subtleties of knowing which neighborhoods, which streets and even more important, which renovations make these properties produce the best return is very important and often overlooked when investors are in a hurry.  

I'd shoot for the one that the agent uses for his own personal projects.