CAP rates for Loopnet MHP

Based on the articles that Frank and Dave have written (thanks for sharing, BTW), they like to find parks going for cap rates @10% or higher. Parks w/10-12% or higher would presumably need some fix - up and perhaps yield an opportunity to gain some sweat equity. However, all the parks in my state (Virginia) seem to be listed for sub 9 and lower. Some are simply ridiculous (7.5% for parks with a ton of POH, for instance).
Is this just indicative of my particular area? Are there any fairly priced parks out there? Or is the “secret” out on MHP?


Listings on Mobilehomeparkstore and LoopNet frequently include crazy pricing, just as you will find on eBay. We estimate that roughly 75% of these on-line listings are priced significantly too high. That does not mean, however, that they seller will not accept a lower offer. I bought a park on for 1/2 of listing price years ago. Some of the best deals come from “pocket listings” of brokers, which are not even available on-line. So the problem is not that the “secret” is out on mobile home parks, but that you are needing to dig deeper into the offerings to see what’s flexible on pricing, as well as adding in more than just on-line deals to look at.