Most pro forma are inflated and underestimate cap ex, repairs, tenant turnover costs.

There are a lot of multi-family buildings on the street, but I don't know if mine will fit within the 12.5% cap.

@Kyle Fanene very difficult, all investors I know from CA are in other markets, double digit net caps are to be had if you know where to look and have a team helping you,Good Luck 

From what I have read and heard, a conservative underwriter should project the exit cap rate at least 50 to 200 bps higher than the purchase cap rate.

You might find out that they can make rent happen at levels higher than they are letting on.How much are they below market rents and what's the cap rate in the area?

The area was pretty quiet and we were hoping to owner-occupy but wasn't sure if the property is safe in this area.I was just wondering though - how much is the cap rate in Ray Town and is the rent to price ratio reasonable in Raytown, if you don't mind sharing?

Yes the caps are around 7 percent for multifamily, but there are some pretty rough areas. 

Avery Carl , are there benchmarks to look for in terms of Cash on cash return, cap rate & total annual cash flow?

Lower appreciation with less control of your unit but you are more hands off and larger repairs and cap ex are taken care of by the association.

, but it would be terrible on a $500k property (that's a 1.2% cap).