Car Wash Asset - What Am I Missing

[Drew Petro]

Gross revenue of ~$75k, NOI of ~$35k, valuation based off 4.3x gross-revenue, not 5-7% cap rate. Better Cash flow monthly?

My realtor called me recently with an interesting investment opportunity - a local car wash. It is a 4 bay manual car wash with 1 bay as an automatic drive-through type wash. My question is around cash flow of this asset class. Apparently car washes are valued off a multiple of gross revenue (somewhere between 3-5 for this type, it seems, market dependent). 

Whats interesting is that when you look at this P&L next to that of a similar gross-revenue multifamily or self storage facility, it is VERY similar. Gross revenue of about $75k, NOI of about $35k. What I dont understand is the sale price of a multifamily or storage facility will be off a Cap rate of, in my area, 5-7% (sale price of about $550k+). This car wash is listed at $320k (4.3x gross revenue). Obviously a loan for $320k would require less capital and less amount in monthly payments than a loan for $550k ... increasing your cash flow. Again, top line revenue similar, expense amount similar...

What am I missing here??? Assuming you would want to manage both just as much, why not buy the less expensive asset that produces just as much cash flow??