6-family at an 8 cap!?

[Michael Elfant]

Hi - I was shown a 6 family complex with a total of 15 parking spots that surmounted to an 8% cap rate.  The units all are old and will surely need work in the not to distant future.  Also, the building is rent controlled so you wouldn't really be able to increase the value by renovating and raising rents.  

I was wondering how people look at a deal like this where the cap rate sounds great on paper for the area but it needs a good amount of cap-ex and is rent controlled?  Is it still attractive given all of this information if comps that are in better shape are trading at a 6% cap max.  

Thx,

Mike