I think much of this relies on a few assumptions and should be viewed through the lens of where we think the RE cycle in PDX is heading in the short/mid term.

Lastly, Cap Rates are dynamistic in nature and should be evaluated through an objective lens. 

@Will Barnard I see your point, I just view OP's question from a different lens. 

Just listened to the Bloomberg Masters In Business podcast episode with Len Keifer of Freddie Mac.

I do not know what the implications are for insurance and or what other risks this poses.I am considering going back at a much lower purchase price (as if it was a duplex) but my agent has already told me she doesnt think they will do that based on conversation with the seller agent.In the end I think I can make the numbers work but it feels like I am assuming a lot of risk.So right now I am considering a price that lands somewhere between what I am in contract for and what NOI from a duplex would value it as.Just curious about the approach or lens others would use to handle this type of situation. 

There's another lens to look at ROE through that sometimes gets overlooked. 

Len

Plus the differences of opinions being offered here might contradict because most are answering through the lens of their current situation. 

As a contractor as well as a buy and hold investor, I look at choices like this through the lens of I guy who do only wants to spend this money once.

Originally posted by @Len Ayton:Good day bigger pockets.