Help me analyze this mobile park deal!

[Sherry Phan]

Hi everyone!

I'm looking at a mobile park located in Victorville, CA and I need help analyzing the cap rate along with any tips or suggestions:

- Mobile park with 366 units, currently 350 are occupied & paying rent

- Average rent per month is $575 ($2,415,000 gross income)

- The realtor is not aware of exact monthly expenses, but I'm forecasting 40% ($966,000)

- Half of the mobile park was appraised at $12.5M (175 units)

- The seller is asking for $30M, which gives me a cap rate of 4.83%

This property would be a buy & hold for an investor, would a cap rate of 4.83% justify the purchase price at $30M?