So cap rate purchase is generally low and you are hoping for increased rent growth to further yields unless you built the complex from the ground up to own then you might have a 10 cap rate to cost versus buying in the market for a 6 for class A apartments  with little operating expenses.Watch out for (newly renovated) properties where some syndicators and sponsors do rehabs on the cheap but the expensive items are fixing to go out after you own it reducing yields heavily in future years.Newly renovated to these sellers might mean carpet,paint, some lighting fixtures.

I can spend the money, just hoping for a high cap rate.Any thoughts?  

I just started using the BP Rental Calculator and was wondering why on the Cap Rate sections it says to leave blank when inputting Single Family homes, only use for 5+ unit properties?

I'm asking for any insight on how to get the most "bang for my buck."

Obviously cap ex set asides.

Don't cut repair costs or cap ex or something to try and make a deal CF.

I'm targeting multifamily properties, where before taking into account me living there and after taking into account the rehab, the property could generate a 12.5+ cap with the student rents.What am I not thinking about which could hinder my plan?

When negotiating the agreement, the tenant should consider whether he or she wants to try to negotiate a cap on the amount that he or she can be required to spend making repairs.

Purchase price $175k:Cash Flow = $713/moCash on Cash ROI = 11%Cap Rate = 11%Purchase price $200k:Cash Flow = $502/moCash on Cash ROI = 7%Cap Rate = 9%My goal is to live in one of the units for year and then hold the property to generate cash flow that can be reinvested (either in this place by paying off the loan early or in a new investment).  

After $150k of reno, property currently does $85k gross/year with an NOI of $59,500 and is currently worth $850k at a 7-cap.