Cap Rate ,...same As Apts.???
Can someone tell me about the cap rate for M/H parks, is it the same as when using them with apt bldgs to help in evaluating the deal, that is before your time is invested with your true due diligence needed to do before buying.
I have found 2 M/H parks that I wish to evaulate to determine the true value or a good idea what to offer for them and using the cap rate was to do this.
Any help on this, please.
[addsig]
I don't know anything about a cap rate, but I know if your considering purchasing a MH park you should get one that is almost completely full OR be prepared to fill it up yourself and rent out the units as well as the lots. Financing for MH's (Home Only) to be placed in parks, pretty tough right now!! It still happens, but customer(s) has to be strong as garlic!!
If you have the money, buy one with lots of emty spaces ,after you determine WHY it's got empty spacesand correct the problem,fill it up with your mobile homes bought at auction . Sell them owner financing and rent out the spaces, charging 12-15% interest w/ low down payments. caution ,buy only 1-5 yr olds.
I am trying to buy a 40 unit in CO so I called a local appraiser, they gave me a list of parks that sold here and even figured the cap rates for me. The recent sales ranged from 9-10 cap rates. That is how they figured their worth.
So if I were you I would call a mortgage company or look in the phone book to find a commercial appraiser.
Hope this helps and good luck.
8-)