I love the support and information available in this field of REI, but when cap rates are advertised at 8% I just don’t see how it’s that great of a deal for me. The single-family Mobile Home rentals I am purchasing are cap rates over 20%. I definitely see the appeal of having one closing and then adding 50 units to the books though. With the properties I have, every few months I have enough down payment to buy another SFH.
I think it’s best to re-invest my earnings as soon as possible, so they can grow, especially when compared to saving for two years to buy a park at half the cap rate. A lot of the parks I see are more expensive per pad then an individual parcel home.
What am I missing here, is it scalability?