All Forum Posts by: Sherry Phan
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Post: Help me analyze this mobile park deal!
Sherry PhanPosted
- Wholesaler
- Anaheim, CA
- Posts 2
- Votes 0
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?