For single family properties and small multi unit buildings personally cap rate is not a good indicator.

This being said, cap rates do not take certain elements into consideration such as mortgage amortization and appreciation and while the 2% rule is a quick and effective indicator it does not always mean it’s a good or bad investment property. 

My agent indicated to me that he believes the Seller wants to sell other properties from his portfolio in the near future.

But as soon as they indicate they're willing to discuss selling their house, you need to make that personal connection ASAP.

Their criteria of the best is: Rising property prices and historical appreciation in market valuesAffordable rental property can help keep your cash flow high and your equity growing, generating more profits over the long termPopulation growth that creates a consistent and predictable demand for housingEmployment gains and job market growth give residents and businesses a reason to choose one state over anotherHigh rental occupancy rates measure how much of the housing supply in a real estate market is vacantGrowing share of renter-occupied households indicate how attractive a housing market is for renters, due to factors such as housing affordability and lifestyle choices to rent rather than own, along with potential for future growthStates with low property taxes help keep the cost of living low and net cash flow from investment property highThey caveat their analysis however by stating at the end that every state has an area where real estate is good. 20 Best States

Some have used population migration as the indicator.

The 6k Mai master appraisal had indicated 2 houses a month or a 18 month sell out ..

I saw no indication that this was the intent 2) when you go to sell you likely would get decent value for the JADU only from purchasers who were planning to house hack (owner occupy).  

Past behavior is indicative or future behavior so why can't that be taken into account.

Turned out that there was more land than indicated after performance of survey.