First Foray Into Mobile Home Park Investing

[Jimmy Toussaint]

Hey Everyone,

My family owns a multi-unit in Port au Prince, Haiti and a triplex in NYC, but my brother and I started a company together where we will be making investments ourselves. I researched a ton about MHP investing and came across a bunch of deals. When looking at deals, I found a couple that I liked, that had really high cap rates. 

When we're thinking about multi families, a really high cap rate can be an indicator that the property is in a really bad neighborhood. A warzone almost. Is that necessarily true about MHPs as well? I spoke to a few potential sellers over the phone and they strike me as just folks who may want to retire and they're totally ok with offering a good deal. 

Should a high cap rate be presumed to have the same indicators when we are dealing with MHPs? Any insight would be appreciated. Cheers