While it may be of use for an investor to know what the cap rate comes in at for their particular purchase of a SFR, it has no bearing on the actual market value.Commercial is an entirely different story.I also think that you are correct in that there is no data for residential units to get an accurate market cap rate if these units were valuated on the income approach.

Inspector's opinion is that foundation showing signs of movement that exceeds normal tolerances and changes in floor elevation of house greater than would normally be expected.Not only does that sound like a red flag to me, but also the following::- Soil levels against exterior grade beam appear to be too low- interior sheetrock cracks and/or stress indicators (multiple areas photographed; about 20)- floor slopes and/or unlevel areas (bathrooms, living space)- misalignment of exterior doors due to foundation movement (very obvious)- deflection cracks in exterior veneer (a few I wouldn't be too concerned, but there are pictures of about 20 areas that show more than a hand's width of defect with signs of poor "band-aid" repair)Not sure if I can post pictures but figured the description is enough to determine yes or no.Is this a good or bad investment stepping into?

@Nicholas Di Giugno I’m in big bear CA it’s a ski and lake town about and hour and a half from LA and 2 hours from San Diego and is the closed place to go skiing for tens of millions of people.

The are so many types of soil and so many types of stabilization.

I also think a more important questions would be are your numbers accurate for rent, repairs and expenses. 

@Andy R. 1) Residential tenant security deposits must be deposited into an interest-bearing account. 

They are stranded in the wilderness, starving and freezing and fighting bears in deadly hand-to-hand combat (you read that right).

New York weather is a bear on mobile homes.

Thank you and please bear with me if some of the answers to these questions seem obvious.

Selling them right now is like killing the golden goose.The very last thing I want right now with interest rates near zero is a giant pile of Federal Reserve notes that would be nearly impossible to put back to work in real estate and I certainly can't earn a return on interest-bearing instruments, i.e.