Looking at property in Central California on a river. Has been there over 20 years. Long hx of 100% occupied and has waiting list. 13 /13 lots occupied and tenants own the MH. Rent has been $450-500 for over past 5 years. New sewer system and electrical outlets. So, initially looks fairly interesting. About $77,00 rent; $15,000 expenses; net $52,000.
From Frank’s figures= (13)($475 avg. rent)(12)(25% expenses)(10 (desired cap rate)= $204,000.
They want $550K.
Where’s a good place to start bid? This MHP–even at $500K–seem attractive w stability, etc…