Advice on large block of single family rentals

[Kevin Layman]

I'm a investor/flipper in Little Rock. Another retiring investor is offering his entire inventory of single family rent houses (50+) at a cap rate of 5%. These houses are mostly located in what has been described to me as "war zones" in North Little Rock AR, asking prices are in the $40-60,000 range.

A management company is in place.

Another experienced investor is telling me that cap rates in those neighborhoods should be more like 20%, without going into specifics on addresses does anyone have any input on this?

Assuming the seller is willing to be reasonable about valuation, is it even possible to finance such a transaction?