Cap Rate

Hi everyone. I am new to the MHP business . I have been reading the forum and always hear about Cap Rates. I thought I had figured it out then I read something about a formula and now I am puzzled.

Here is my scenario using the formula.

11 occupied lots

x

lot rent 185.00=

2035

x.6 =

1221

x12=

14652

x10 cap =

146520

Assuming everything else checks out what should I pay for this park?

I understand there are a lot of varieables to consider but at least this is a starting point.

Thanks for your reply. Freddie