I have been shopping for a MHP for 3 years and have found nearly all sellers living in fantasy land in terms of Cap Rates.
Now with the financial collapse it is even much much worse.
Wake Up !!!
Do you understand Warren Buffet just lent Pfizer Pharmaceuticals $300M and is charging them 9%…He loaned $$ to Harley Davidson and they are paying 15% !!!
These companies are foundational to the US economy and he never has to do anything for his investment except go to the mail box and collect the interest!!!
To invest in a MHP w/park owned homes and have to deal with that all the headaches and to boot the units are deprecating assets …one should be getting at a minimum 25-30% cap rate…
The next shoe to fall will be commercial real-estate and that will affect parks as they are valued off of the income method as opposed to SFR.
Wake up guys…$ is impossible to borrow and interst rates are going to go up over 10% like in the 70’s many of you with leverged parks are bankrupt and don’t yet know it…