I have been analyzing some 5 unit multi-family properties lately and was wondering when factoring in cap expenses at 5%, should that percentage be per door for 25%, or should it just remain at 5% in total? 

Do you use DCSR to measure profitability or CAPs (pro forma)?

Im hoping I can get enough rental income on the first year to cover all expenses including mortgage, cap ex, repairs, vacancy, and hopefully I can wiggle in management for the convenience of properly screening of quality tenants.

With a 12k sqft roof, I don't think I have anywhere near enough space to offset a significant part of the electric bill.On the surface project solar, estimates a cost of $600k to fully offset the $80k in electric bills which is a 7.5 cap, not bad and considering that the NOI of the building increases by $80k, at a 6.25 cap, the building would be worth $1.3m more.

Buyers see all this money to be made by raising the rents and they have been willing to pay more for similar properties, which depresses cap rates, and increases the sales prices.

The other two are rented.So in the analysis it gaves me something around NOI             Total Cash Needed Cash on Cash ROI Purchase Cap Rate                                                                        $8,604.00      $198,000.00                     4.35%             5.21%Property InformationPurchase Price: $165,000.00Purchase Closing Costs: $3,000.00Estimated Repair Costs: $30,000.00Total Cost of Project: $198,000.00After Repair Value $240,000.00Down Payment: $165,000.00This is a bad deal?

Cap rates in the area can range from 7-9% on average.

I'm looking for something around 20 units, 8-10 CAP, that I can purchase myself.

The cap rates are phenomenal and my 1031 exchange money could not commingle as a passive in any of lifestyles deals.  

I was attracted to this deal specifically because of the cash on cash return (20%) and cap rate (21.96%).