Purchasing a 2nd RV/Mobile Home Park - Current Market

[Josh Pratt]

Hello, 

In 2019, I purchased a few smaller, single-family homes to get my feet wet in the rental game.  In 2020, I purchased a small RV park in my hometown.  It was a great investment as it's all city utilities, was always previously full and I was able to up lot rent from $350 to $400 really quick as the only other competition in town is higher than that.  I was blessed to see a cap rate at 20 percent in 2021. 

I would like to buy another RV or mobile home park, probably about twice the size of what I currently have.  What is a realistic cap rate these days?  I'm in Texas and would like to purchase in the Central Texas area if possible.  Obviously something with value-add would be great.  

I was just analyzing an on-market mobile home park recently.  They were advertising a 8.5% cap rate, but that also included the rent they were charging for the park-owned homes on top of the lot rent.  I believe that is a no-no and the value should only be on what the trailers themselves are actually worth?  I bought my RV park off-market, so maybe that will be my best bet.  I just recently flipped one of my rentals and am selling another, so I'd like to roll that money into something.  

Just looking for any thoughts or suggestions.