I think you need to re-run your pro forma, apply that cap rate, and see what kind of value you come up with.To pick up on @Brian Anderson's points:2% Vacancy is very low.

Also my new property manager provided rental comps and suggested to reduce rents by $50 - $100 per month which also impacted my ACTUAL return compared to their pro forma.

I only have a couple rentals for now but would like to form a relationship with a good tax accountant for the long term.

Hello BP,I am wondering if anyone has an underwriting spreadsheet for commercial property? I'm looking for something I could analyze triple net leases with.Thanks!

PROPERTY SUMMARY Property                                                                Florida Heights, Atlanta                 Westview, Atlanta           B/BA 4/2 3/1 Sq Ft 1,980 1,135 Built 2005 1948 Asking Price $ 99,000 $ 99,000 Source Local Wholesaler Local Wholesaler Occupancy Tenanted Tenanted Current Rent $1,030 $865  DUE DILIGENCE Exit Strategy: Buy & Hold                                    Pro-Forma ARV (as-is) $145,000                                          $140,000                          Pro-Forma Rent $1,400 $1,200 Rehab for Buy & Hold $15,000 $10,000 Exit Strategy: Flip Pro-Forma ARV (Flip) $210,000 $390,000 Rehab for Buy & Hold $50,000 140,000CASH CLOSE Closed within                          30 Days                                             10 Days                            Close Date 1/11/2019 1/11/2019 Contract Price* $ 98,000 $ 99,000 Adjustments (Taxs, Pro-rated rent and deposits )*               $ (1,416) $ (1,201) Closing Cost* $ 1,005 $ 1,369 Adjusted Purchase Price* $ 97,589 $ 99,168 * Per HUD StatementREHAB PRIOR TO APPRAISAL Handyman                                                             $2,230                                               $6,025                             Gutter $250 $1,150 Appraisal $695 $695 Plumbing $0 750 Cleaning 0 125 Total Rehab Cost $3,175 $8,745 MORTGAGE Loan Product Delayed Financing                           Rate/Term Loan            Closing date 2/21/2019 2/21/2019 Appraised for $ 156,200 $ 150,500 LTV 67% 71% Rate 5.75 6.12 Term 30 years 30 years Closing cost and Prepaid (Financed ) $ 8,502 7500 Loan Proceed $ 96,500 $ 100,088 Rent Collected during mortgage free months $ 2,060 $ 1,730 Total Cash Spent $ (100,764) $ (107,913) Cash Stuck in the Deal $ (2,204) $ (6,095)Pictures of the properties: BRRRR Analyzer we use: (2 of 9 tabs) 

Looking at the surrounding market, nearby rent comps, property improvements that can push NOI growth, future pro forma numbers, tax reassessment costs....

I put alot of weight in current property tax when doing my pro-forma, as it can easily blow up OPEX and kill a deal.

The problem with using cap rates in a seller's market is that most deals are being sold as value adds, so cap rates are going to be low.You need to understand what your pro forma NOI looks like once your deal is stabilized.

They don't need any amenities other than being clean, safe and near an area with either large construction or in need of affordable housing (which is almost everywhere.As Don mentioned being overleveraged is a problem if the owners don't understand how to manage the park and have true financials instead of trying to base off of pro formas. 

We then try to form a well diversified portfolio across sponsors, asset class, geography, risk profile etc.