After a lot of searching I finally found a property that meets my criteria - city water/sewer, submetered and billed back to tenants by the city, 85% occupancy with no unocupied or park-owned homes. Expense ratio based on seller proforma seems a bit high at 40% though.
Located about 80 miles outside a 5M+ US city and has a population base of about 100K within a 20 mile radius. Lot rent is currently $250 and it has 150 lots. The asking price is 9% cap and the seller won’t budge on the price. I know this is not a 5x return-type of park, it’s stable, well kept and is close to being turn key yet still has some moderate upside.
Does that cap rate sound right or would I be overpaying for this park?