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). 

I want to see capability and type of debt structure and cap rate return they are seeking to see if it is a long shot or reasonable given market conditions.Time is money so you have to work with buyers that are ready,willing,able, and realistic.Brokers like to work with other brokers because they know most brokers have screened their buyers to perform.

Once you see the property condition and the numbers, your offer is generally calculated based on the expected cap rate in your area. 

I checked MLS listing sheet and it says that the co-op comp is flat $7500 of (Net SP) When I questioned her about co-op fee she said standard co-op is 3% or 6% dual agency.She went on to explain her brokerage will get 10k and she gets a portion of that 10k.Any feedback on legality and whether she is trying to pad her compensation.The reason I am considering paying 2k is that property is fully occupied with 1.94 dcr  and 18% coc  and an 11 cap and has just fallen out of contract and she hasn't place the listing back on MLS so I won't have competition.Thanks in advance!

If the age and area cap rate for this type of asset is 8% then the calculations are $53,496 / 0.08 = $668,700.

@Edward Yoo, I'd expect closer to 40% expenses, which puts you at a NOI of $551k and a 5.4% cap rate (assuming $225/sq ft build price).

My Main recommendation is: ALWAYS try to buy at a higher cap rate than is usual for the market there.ie.