Hi all, I’m trying to put together an offer on a 35 space MHP.
There is some deferred maintenance / one-off cap expenses that need to be addressed. Are these factored into the cap rate? I’m trying to arrive at an offer price that is a solid 10-11% cap, and I’m not sure if I should add these in – since they won’t be recurring – or arrive at an offer price without them, THEN subtract the expenses to arrive at a final offer price.
Thanks in advance!