Turnkey, fully occupied park in small, but strong NE market. 60 lots. $355/lot/mth rent. City sewer and water. All individually metered. No POHs. Owner pays property taxes, street electricity, snow removal, insurance, lawncare, garbage. Using pf property taxes gets us to $75/lot/mth expenses using his numbers for other expenses, which is aggressive. I added an extra $30/lot for mgmt fee and misc (my travel) to be conservative, taking us to $105, or 70%. Still seems aggressive but he’s confident in his numbers. At least 59 of 60 have been rented for past 5 years. Town is small, but has Walmart, etc and is part of larger 200k growing MSA within 45 minutes. Can probably only squeeze 4% on rents. From my google streetview, earth and http://www.city-data.com/ diligence it seems like the Class A of MHPs.
Understand this could fall in the “stabilized, with limited upside” camp but given seemingly high quality of asset one might argue it merits paying more than a 10 cap in this environment. Would love to hear everyone’s thoughts.