Can anyone tell me whether they add anticipated road repairs to the purchase price when calculating the cap rate?
Thx!
Shelly
Of course that is a factor when you are looking at the park in more details. I guess it honestly depends on how big the repairs you are wanting to do that could affect the price. If its a $1mm park and you have 10k worth of repairs, I would say probably not worth it to ask for a price concession. Now if its $100k, that’s a different story.
it also depends on how good a deal you are already getting and if you could afford to not take a price cut and still make your returns you are wanting to get.
Thank you for your response! Have you had any luck in just repairing potholes (@ 40) as a temporary band aid?