Cap rate

Doe’s anyone know the average cap rates for

parks that are for sale in north Florida or Alabama?

Has anyone ever sold a park, (maybe with a high %

of park owned homes) priced using the cap rate?

Thanks in advance.



Cap rates are all subjective as it is based upon what the seller/broker inputs into the equation. I have seen cap rates of properties that have come across my desk (on actuals) from 4 to 10 in Florida. Alabama would have higher cap rates.

Make sure that you are buying on actuals and not pro forma. Also make sure that the seller/broker is not including the park owned home income (whether on lease option or rent) into the cap rate… this will give you an inflated cap rate.


I’ve only been doing this for about 8 years, but this seems to

be a growing trend in my area. Most commercial properties

listed in my area weather it’s a auto parts store or multi-family

are priced useing the cap rate.

Thanks for your input.