analysis help - great CCR/cash flow but low profit/unit!!!

[Ryan D.]

I need some help from the community for a gut check on my analysis. I'm looking at a 14 unit complex with rents that are fairly under market. With rents AS IS, the deal (with a purchase price that I think is reasonable) is yields:

• CCR of 12%, $1,150/mon cash flow
• Cap rate of 8.7% 
• but the profit per unit is only $82/month!

Once the rents are brought up to market rate, the property performs really well:

• CCR goes to an excellent 25% , $2500/mon cash flow
• Cap rate goes to 12.5%
• he profit per unit goes up to $170, better but still fairly low.

I'm torn here, the CCR/CapRate/Cash flow has great potential, but the profit per unit is terrible (I make $225-250/mon/unit on all my other properties). Wondering what the community thinks about the profit per unit metric?