I'm looking at a property in a nearby college town that currently has a 9% cap rate.

We bought the property as a long term buy hold and we currently sit on a cap rate of +5%.

Can someone explain to me the difference between Cap Rate and Pro Forma Cap Rate?

Now, I have read about NOI, CAP rate etc and evaluating the purchase price based on cap-rate.

If the purchase price is under this number, it's a decent deal (given that it is a good neighborhood).This rule is a shorthand way of calculating the price at a 10% cap, assuming that expenses are 50% of rents.

Based on area cap rate, I believe I increased the value to around 475K from a purchase price of 340K.

I would expect a better cap rate considering you can't force appreciation as on a true MF (5+ unit) property.

I assume 15% for all repairs, 10 normal and 5 for cap ex.  10% for vacancies, that way I am covered for a month per year.   8% for my manager.  

At 10% cap rate, the offering price is:  $84kAs is typical the park owner is way over valuing park owned home rent!!!!!  

Its an option but not my top choice.I think that leveraging might be the best option...possibly sell 1 or more of them and use the $$$ to buy a duplex or 4plex @ a much better CAP rate.