I am looking at a 10 lot park where city water, sewer, electricity and trash is direct billed to the tenant.
All homes are owned by tenants who mow their own yards.
The streets are not owned by the park but by the city.
There doesn’t appear much to do other than collect rent and resell a home if you have to do an eviction. I am not sure I would need a manager for this as it is so small.
Lot rent is $210 a month which is at market. All the home are old and paid off.
What kind of an expense ratio and cap rate do you set for a small park where there are no utility bills, no mowing, and no street maintenance?