Alone with increasing the number of rentals I also have got in better neighborhoods so better rents.

Take that seriously to increase your chance of success.  

Use seller financing to hold the note to increase your profits, not sell the note to lower your profits.IRR would be the best way to calculate your ROI.

If this becomes a long term tenant, you just established/allowed 2 things to happen:1 - You just established a lower rate as a starting point, with all rent increases to them coming off this amount. 

Also, the 40% estimate may be low, as you would increase your gross income by $100K and could easily move tax brackets.

Once perceptions of locals change for Frogtown the prices will go up quickly.Unfortunately the current interest rate increase from the fed and the 4 more expected increases may put a damper on MF properties in the near future.

Homestead properties are capped st a 3%/yr value increase, along with a $50k exemption.

I understand there is a shortage of supply on the market in many of the areas but can we continue to see an increase in prices within the next 2-5 years and are these prices sustainable? 

He couldn't provide me the rent roll but saying the customers pay cash to the owner, which I think it's a bit suspicious even though he claimed the cap rate with the Excel spreadsheet saying it's over 11%.

Plus, you have an increase in liability the more people/stuff you have on the property.