They are guaranteed to have a strong tenant base, and a rise in cap rates won't affect you as you're not in it for the capital appreciation.2.

I always love when I get a call saying can you get me 75% LTV when the customer is buying at a 4 cap. 

Then in the spreadsheet I added columns to calculate what percent of ARV the all-in price comes to (i.e. the "70% rule" number — that should have a name but I don't recall seeing one), the GRM, the "2% rule" number (which also need a name), cap rate, etc.Another nice feature is that if you add new fields to your form they are inserted into your spreadsheet between the previously existing form columns and any columns you added.

You may want to look into/ask your lender about the Home Possible program (our neighborhood had no income cap), which I think cut down the PMI a bit.

Monthly Cash Flow = Income – ExpensesPro Froma Cap Rate = ?

But the duplex I didnt account for cap ex, maintenance, and potential increase in prop tax (which happened). 

At a 10% cap rate that would be a purchase price north of $750K.

The property had no running water, and the gas was capped at the meter so no heat.  

@Joey Budka - As far as I understand, Section 8 is exempt from Oakland's rent control price caps.

Believe it or not, I've seen properties that one could acquire for 8% to 10% cap rates in those areas.