We are young real estate investors and will be seeking to expand our real estate portfolio in the future:15 yr fixed 3.75% down-payment 20%25 yr amortized 10 yr fixed at 4% auto adjusting every 5 years down-payment 25% (no ceiling, no limits on amount of change)Property Cap Rate: 8.7%Cash on Cash for 15 Year: 13.4%Cash on Cash for 25 Year: 5.9%The different of the monthly mortgage payment is about $1100 a month.

However,  The new refinance at 3.5% will allow my property to positively cash flow around $300 after accounting for cap ex, vacancy, maintenance & management. 

The area is a A-B neighborhood, based on a 10 cap the price seems reasonable (comes out to 7.6 cap as is), the rents are a little low for 2 and 3 bedrooms but the kitchens and baths need updating so there is room for forced appreciation.

@Adam Stanton A SFH with amazing tenants made out of self healing, magic building stuff might be 15%.Your management fee should be 10%, vacancy 8.1% and Cap Ex at least $150/month.Here is the list from my spreadsheet:Monthly Mortgage paymentTaxesSewer and WaterTrashHeat/UtilitiesHOACap Ex and OpsInsuranceMgmt FeeVacancy

Yes cap rates are historically low.

Some people like the 50%, some 1%, some 2%, other go off cap rate, etc.

Divide the NOI by the cap rate investors want in your area.

Picked up some great 10 cap and 11 cap deals for $50-65k in the last 12 months from a contact in my state online.

What kind of cap rates are you seeing with your vacation rentals in Hawaii?

I might check into that card as the cap on the 6% gift cards is $6000 and I spend well over that!