Cap rates are a function of risk; just like any other investment as the returns increase, so does the associated risk.

I am feeling as of late that it is getting increasingly harder to find more deals in our hot Las Vegas market at the moment.

Average growth of Income increase vs house price shows huge difference (sign of bubble)There are many U.S. cities with solid fundamentals (population growth, employment, strong local economy) where I can see potential (still below peaks from 2008s) and decent cash flow/cap rates. 

Increasing your active income with Real Estate can help you get to your passive income goals faster. 

I agree with the previous poster.Also, to alleviate this concern with his next tenant, I suggest your FiL contract to begin service with the garbage collection company, increase the rent by the amount of that cost, and then market the house as "comes with garbage collection!"

I could basically do everything related to management for them, including optimizing the listing to increase earning potential, organize the cleaning, and everything in between!

The broker is telling you how awesome the deal is and you want to get one under your belt, so you convince yourself that the market will keep increasing in value at it's current speed. 

After having the property inspected you should be able to project a more accurate estimate.I would increase the amount for Maintenance for now.  

We had a potential tenant who was late on multiple things and was wanting to increase her rent from $800 to $1300 to move into our place.

I always removed the additional income because I feel I should not value a property for lost key fobs or pet fees.Also, when it comes to Expenses I left the expenses as is and mostly increased the management fee from 2% to maybe 3% depending on the size of the deal and I always adjusted the property taxes.Is that the right way to quickly value a property?