30 lots. 29 filled. Mid-atlantic area. No park owned homes. Older homes. One person owns 6 homes and another owns 4 homes. small town of 1700 people, 18 miles to walmart. no metro area. Lot rent is $150 but owner is raising it to $175 prior to closing. septic system. purchase price is $315k. I'm pricing it at 12% cap rate with $7k of annual maintenance cost for septic repair and pumping.
Would you walk away with this cap rate given the rural area and no population growth?
Any thoughts would be greatly appreciated.