Deal points are as follows:2 separate properties both in N California61 unit park with 11 park owned homeslarge club house, common areas and homes really good condition40 unit park good condition but very small town 7 park owned homes.90% occupancy currentlyCurrently both gross income 504k annually I have in contract at 3.5 million owner is willing to carry a 1st at 5.5% over 30 years if I put down 30%.

The SFH price is sustained by owner occupants. 

I turned it around in just 60 days increasing the occupancy from 16% to 100%!

I will live in the property until I have filled my FHA requirements for occupancy.

I use 10%, but I don't have a large enough sample to know if that's right, and most of my units rent for less than $600/mo.Make sure you count up all the taxes carefully as well, including occupancy permits and various other ordinances that exist in the Pittsburgh area.

Loans are typically short-term which is a good thing because interest rates are higher than rates for owner occupant, traditional loans.

You may be able to see the property for more to a owner occupant but at least you know what the lowest amount your property is worth once repaired.

In 2009 many apartment complexes all across the pricing spectrum lost occupancy and suffered from skips, uncollectable debt, and leasing concessions and in some cases negative rent growth.  

If you look at all the occupations involved in a RE Deal: RE Broker, Appraiser, Inspector, Mortgage Broker, Attorney, Electricians, Carpenters, Plumbers, Landscapers, etc They only make crumbs or a small slice of the pie compared to the Investor.

How long have tenants been there as compared to turnover for stability of servicing the mortgage and find out the breakeven occupancy level for your purchase price and mortgage rate and terms.Now you said you factored 60% off because landlord pays water trash but the numbers are off.If 50% you would go X .50If 60% costs you would go X .40 ( 60% costs ) = 26,352 X .40 =10,540.80 NOILet's say 10,540 annual NOITake 10,540 / 145,000 = a 7 capSo it looks like you went the other way doing your calcs.26,352 X .60 = 15,811.20 which is your annual cost and NOT the NOI.On these properties you need to see how the other landlords treat their buildings which will impact ongoing cash flow and quality of tenants for you and resale value.