Too good to be true. What am I not seeing?

[Pratik P.]

Hi everyone, 

I've been saving up funds to make my first multifamily purchase soon, so I've been doing a lot of research about underwriting and different markets around the country. I came across this listing in St.Petersburg, FL that has me a bit confused. I would really appreciate it if you could take a look at it and let me know if I'm missing something. Here is the OM: 2nd St Suites

The OM is saying they are selling at a 10.26% Cap with a CoC ROI of 26%. I know ROI will depend on how much you're putting down, but this cap rate seems oddly high given that cap rates in that area seem be around 6-8%. Is there something about this property that makes it undesirable? It's very old, but was renovated in 2014. Vacancy is low at 5%. It has 11 studio units at 200sqft which I think is tiny, but apparently they are renting well. So what am I missing!?

Thanks for your time :]