125 SFH Portfolio Acquisition

[Winston Parks]

BPers,

I have read several posts here and intend on re-listening to a podcast or so that touched on this topic; HOWEVER, there are some lingering questions. My background is in commercial, so.....

Why can I not treat this like a B/C class MHP or Multifamily? NOI/CAP = Purchase Price? Ive spend some time underwriting this and it hit me that I was "trying to hard". Any of you experts know why I could not treat it like this?

Deal:

125 SFHs

95 rented, 30 vacant

Avg rent: $661, Gross: $747,912

Vacancy: 12% (Total Guess)

Taxes & Insurance: 15.8% (I have actuals)

Repairs & Maintenance: 12%

Lawncare for Vacants: 1%

Management: 9.2%

Operating Expenses: 50% (coincidence) ; ($373,956)

CAP X: 6% or ($45K) (I believe this to be too low)

Estimated NOI: 328,956

8 cap

Purchase Price: $4,111,950.00

Obviously there are a few areas that need confirmation, but I feel like treating this similar to a CRE deal is justified. No?

Thanks in advance.