What kind of cap rates are expected on a stellar deal?

But cap ex took away a lot of profits.

The numbers look good, but in reality, they typically do not end up providing the returns you anticipated and end up being a money pit there is not enough gross income to account for realisitic cap ex and operating expenses.. unless you own 10 or more.. 

Seems like a lot of businesses like CA.Ab 1482 limits rent increases to 5% + cpi capped at 10% so it exceeds inflation unless inflation exceeds 10% which has not happened this century.  

Companies are having to set aside a certain percentage to cover the Cap Rate insurance and as an abundance of caution with these interest rates- class B are paused.

I also realize I could do a 1031, but I dont see any deals in areas on the mainland US that make sense to me and Cap rates are low there and here in Hawaii.Im torn between paying off the mortgage for a nice cashflow of $3800 per month (ROE of 3.8%), or selling to put roughly 700,000 k in the market and working the 4% FIRE rule with that money after letting it grow for a bit. 

Maybe by year 5 you have real cash flow (meaning enough to cover sustained maintenance/ cap ex) and all other expenses).   

I also look at how “clean” the expenses are: taxes, insurance, PM, and reserves look properly accounted for here, which is important because a deal only works if nothing is hiding off-paper.A 7.5% cap with positive cash flow is respectable in this market, especially on a small multifamily.

They are buying at a 5 % cap rate with a fixed 5.7% loan amortized at 30yrs and first 2 yrs interest only, and they believe that they will sell at a 5% cap rate as well 5 long years from now.

Most of our buyers are capped before they even began looking.