Using a 10% vacancy rate, property manager costs and typical operating costs I am at at 10% CAP rate. 

Exception:  you are an employee of the owner (typically builder/developer) and showing only their properties.That being said, I know of lots of people that are doing just what you propose, and are doing so knowingly or unknowingly breaking the DORE laws, at lest for NY and PA. 

My main question is, do property managers typically charge a higher percentage on units that have lower rents?

In such an instance, assuming no assignment, a seller would typically reduce its purchase price by the amount of the claim that it stood to recover, in order to put the buyer in the same stead that it would have been had no loss occurred.Now, let’s assume that the seller did assign the claim to the buyer, the buyer would have the right, per the assignment, to collect the proceeds of the claim and make the repairs.

That said the typical advice is to look for at least 30% equity.Also keep in mind that all vendors equity numbers are based on computer models, meaning they are estimates.

I’m a buy and hold investor typically looking for value you add commercial multi-family properties.About the deal.

I'm looking for direction on getting a gauge on the typical Cap Rates in the Zip Code of 31805.

For discussion lets assume typical Midwest suburbia.

For discussion lets assume typical Midwest suburbia.

So if you are purchasing a house with land, you typically would try to allocate more of the price to the house, as you don't take depreciation on land.If your goal is maximum taxable writeoffs and you have a number of other properties, you may want to look into cost segregation (but it won't be worth it if you only have this property).Keep in mind that when you sell the property, you'll have to pay tax on the depreciation (usually a 25% rate).Be sure to chat with a CPA about allocating the purchase price in a sale, as you need to follow one of the multiple acceptable ways to allocate.Also, depending on how the rest of your portfolio looks and your timetable for holding, being less aggressive in allocating the purchase to high depreciation items may work out better.