Your CAP rate will be dangerously inaccurate if you calculate expenses incorrectly so let's break those down.Utility Set-up- As an overview you need to know the difference  between city-provided utilities and onsite such as Septic Tanks with Leech fields, lagoons, Wells, EtcGetting more specific what utilities are maintained by the community, paid by the community vs the tenants.I will give you a quick example, I own a park with a bunch of multifamily manufactured units of which I pay the electricity bill.

Also, just two days ago Fannie Mae made it possible to buy a 2-4 unit property as a primary residence with just 5% down.

Lately I have been studying the multifamily property market and I continue to see cap rates between the ranges of 5-8% within 6-8 units around where I'm looking to target my investment.  

It gave us a really nice nest egg to roll into our 16-unit apartment complex that we own and manage now. 

Would it be worth it to convert a multi-family from window units to HVAC?

There is a prospective tenant (PT)looking to rent a unit.

The first option is to add a full bath (around 40-45k) and then house hack the front as a short term rental and live in the back half of the unit.

Im trying to figure out a solution on how I can keep the tenants occupying the home, while my end buyer can make repairs on both the units for about 2 months to add value to the property and potentially raising rents. 

I would like to purchase a multifamily unit and I am not able to live in one of the units. 

We are in Birmingham MI and own over 100 units personally in Metro-Detroit.