Cap rate for single family portfolio?

[Marco Anemone]

I know cap rates are not used for single family houses, but is it appropriate to use for a portfolio of single family houses?

[Chris Seveney]

Quote from @Marco Anemone:

I know cap rates are not used for single family houses, but is it appropriate to use for a portfolio of single family houses?

 Do not use cap rates for single family properties. What if you go to sell one of those properties off, the end buyer is not basing pricing on cap rate they are basing it on comps. 

Also as a reminder a cap rate is only a guide to do an initial analysis on a properties value. It is not the holy grail as it excludes cap ex costs. For example a new building with a 5% cap rate next to an old building with $1M in deferred maintenance at a 6% cap rate both bringing in the same NOI, which one would you rather buy?