Multifamily property thoughts

[Suraj Patel]

Hey all, 

I’ve done my due diligence on this property. It would be the first of this size I ever have purchased so I figured I would get peoples opinion on it.  
What do you guys think about this 

http://www.loopnet.com/Listing...

[Chris Seveney]

Quote from @Suraj Patel:

Quote from @Chris Seveney:

@Suraj Patel

I would not buy a MHP at 5.5% cap. What’s your upside or play? What’s your end game?

At 5.5 I agree. But there’s potential for me to add 7 spots for RVs. I don’t know if you went through the OM that’s on listing but the the potential CAP rate at year 2 could be 10-14%. It sounds good and all but I just want to get more opinions. What do you think of it at that rate?

 If the current owner could have raised prices or increased value then why did they not do so? That is what I always question on any deal where there is "upside", I do not buy based on future upside price I buy off of todays value and if I want to improve the asset I want to benefit not let a seller with an idea profit from this.