Can anyone tell me whether they add anticipated road repairs to the purchase price when calculating the cap rate?
Thx!
Shelly
Can anyone tell me whether they add anticipated road repairs to the purchase price when calculating the cap rate?
Thx!
Shelly
Of course that is a factor when you are looking at the park in more details. I guess it honestly depends on how big the repairs you are wanting to do that could affect the price. If its a $1mm park and you have 10k worth of repairs, I would say probably not worth it to ask for a price concession. Now if its $100k, that’s a different story.
it also depends on how good a deal you are already getting and if you could afford to not take a price cut and still make your returns you are wanting to get.
Thank you for your response! Have you had any luck in just repairing potholes (@ 40) as a temporary band aid?