Due to this factor I don't think that conventional finance will touch the deal.  

The return on investment is your best deciding factor.

What I’m attempting to show is that someone utilizing the 2% rule 5-8 years ago they could now get the same return utilizing a new .6% rule (2% - 1.4%) assuming all other factors were the identical.

How would should I factor in CapEx for my condo knowing that some big expenses such as the roof is taken care of by the HOA?

There is no way to attribute the increase in value to any particular factor.  

Looking for advice on this deal as I have never done a commercial deal.Property type: Mixed use condominium (nonconforming use variance) 1500 sqft beauty salon lease expires next year, they are asking for 4 year renewal, 500 sqft storage stable income long-term lease, parking revenue in a poolSize: 2000 sqftPurchase price : $600,000NOI: $48,000 (7.5 cap, NNN)Location: Honolulu, HICondition: Good, HVAC just replaced, needs $10k in improvements to flooringI'm interested in the property because it's a high cap rate for downtown Honolulu.

Condition, location and maintenance needs are very important.One tenant factor you may run into is the affordability of c/a. 

Factoring this in, would it still be a good move to buy an apt as opposed to renting?

Factoring this in, would it still be a good move to buy an apt as opposed to renting?

Do you just gross up rents to 100% occupied and include a 10-20% vacancy factor...or do you give a dollar value to that unit?