Cap rate


#1

Doe’s anyone know the average cap rates for

parks that are for sale in north Florida or Alabama?

Has anyone ever sold a park, (maybe with a high %

of park owned homes) priced using the cap rate?

Thanks in advance.

Tom


#2

Tom,

Cap rates are all subjective as it is based upon what the seller/broker inputs into the equation. I have seen cap rates of properties that have come across my desk (on actuals) from 4 to 10 in Florida. Alabama would have higher cap rates.

Make sure that you are buying on actuals and not pro forma. Also make sure that the seller/broker is not including the park owned home income (whether on lease option or rent) into the cap rate… this will give you an inflated cap rate.

Corey


#3

I’ve only been doing this for about 8 years, but this seems to

be a growing trend in my area. Most commercial properties

listed in my area weather it’s a auto parts store or multi-family

are priced useing the cap rate.

Thanks for your input.

Tom