When sending an unsolicited purchase offer to a park owner, how can I calculate a good offering price while being sure I get a good cap rate when I don’t have any property income & expense information? Please help
You can call the park and act a like a prospective tenant and ask what the lot rent is and based off of the lot you should be able figure out what your purchase price would based on the formula(lot rent x number of lots x 12 x .6 or .7 x 10). this formula just serves as a basis on what you should pay based on the lot rent only. When talking with the park manager or owner you can ask if the lot rent includes water/sewer and who pays it. You should be able to figure out the number of lots as well either through google earth or a list of the parks you may have.