Have you accounted for everything: vacancy, accounting, advertising, cleaning, insurance, lawn, snow, legal fees, maintenance, repairs, cap expenses, utilities, taxes? 

It's important to know what these are, work on the ones that will give you the most bang for your buck and don't bother with items that an underwriter will not care about.  

(I don't just mean ongoing economies of scale for cap ex).If so, then THAT would be the main reason, rather than mentioning economies of scale for repairs.Also, BECAUSE of those economies of scale, shouldn't that be factored in as less expense per month - therefore resulting in INCREASED cash flow per door for Multis, rather than DECREASED?

You do not want to become the laughing stock of the real estate professional community.The 350k property for 150k would be like a buyer coming to me and saying they want to find a brand new retail strip center at 4 to 5 million with national tenants for an 8.5 to 9 cap rate with brand new leases when the developer has a break even of a 10 cap in the property.

What's your cap rate?

Is the 8.65% cap rate the average for that area?

Well, not considering any cap gains tax, it's just about completely depreciated, so.....the prorated building portion of say $550 of her $625 purchase price, so somewhere around $500k in depreciation recapture taxable as ordinary income, max rate at 25%.

Value of this type of investment is usually measured by cap rate on NOI. 

I'm curious as to what other investors are seeing for their cap rates recently.

3% Cap rate?