Know how they calculate how much they can pay (so you know how much YOU can pay and leave something in for yourself).  

I am wondering if you use the calculators here on BP to figure out the cash flow and ROI for your property.

The typical calculators don't account for the fact that I need to live somewhere, would be paying holding costs such as utilities anyways, or that I won't be paying taxes on the gain (Yay owner occupant!). 

If you've calculated your ARV based on the average of the solds & that average includes some outliers that are significantly lower than the rest of the population then you'll have to consider that your downside risk.  

I would expect that someone in NYC ought to calculate the positive economic impact before trying to prosecute the participants.Linked Taking the Work Out of Short-Term Rentals

You could not handle things if they should waver outside of your calculations.

This is in Richmond, VAI have already paid a deposit of $1000 on this property but after running the numbers through the calculator on BP and accounting for 10% vacancy, 15% Repair & Cap EX COMBINED and paying for water at $50 this property comes in at 6%-8% cap rate and it seems like it has the potential to be a money pit or at least no returns.My question is am I being overly cautious or should I cut my losses on this one and back out of the deal?

You may want to check out the calculators to help you analyze deals.

@Jess Hewittread Brandon Turner's awesome blog which will answer that question:http://www.biggerpockets.com/renewsblog/2013/08/24/real-estate-agents-working-with-investors/Most agents don't have any idea what an NOI is, how to calculate a cap rate, the difference between an A class or D class property, or any other myriad of issues we as investors face that an average homeowner does not.

I wanted to utilize everything pro has to offer (calculators, marketplace etc.) to grow my business as efficiently as possible.I currently work for a local utility company full time for 20 years.