Trying to understand listings using CAP Rate on Single Families

[Zach Hitner]

Hello everyone,

I'm curious as to why it seems so many realtors/listings/landlords love to use CAP rates on single family properties when everything I learned and read say CAP rate is used a measure for multi unit properties? When analyzing properties, my wife and I use Cash on Cash ROI to try and determine the best deals. Is it smarter to use CAP? What function does CAP serve when it comes to analyzing deals at the single family level? We'd appreciate any clarity or advice when it comes to CAP and/or analyzing single family rentals! Thanks everyone!