I see post all the time that refer to a park as "1 star" or "3 star" or any 1-5 star rating. I understand that a 1 star park is low end and 5 star is cream of the crop estate but is there an understood criteria for each rating? If so could someone please explain. Thanks
The rating system is subjective and I have not seen this being defined anywhere.
That's what I thought, well if there is no defined star rating, can some of you give me your star rating that you go by. I know that it's not a concrete system but an idea would be nice.
7% cap rate = 1 Star8% cap rate = 2 Stars9% cap rate = 3 Stars10% cap rate = 4 Stars11% cap rate = 5 Stars
From what I have seen it's a subjective model for describing the quality of a MHP. I don't use it and think all realtors overstate it who do use it. This is the closest thing I have seen to it, only because it explicitly says it's a subjective model that effectively gives you no real gauge for the investment grade of a property.
Whenever I see a listing with a star rating I automatically skip it.
@Randy_CA , I assume the rating system you posted is opposite order?
From what I learned from Frank, its based on a historical rating system, Woodall.
Check out this post: http://www.creonline.com/mobile-home-park-star-ratings.html
From what I have seen in modern day usage, it appears to be more subjective.
So you are suggesting the star rating refers to the NOI and not the quality of the physical park? This seems wrong. When I think of star ratings I think of things like: number of peaked roofs, quality of roads, size of lots, etc.
Jeesh guys, it was a joke.