MHP CAP Rates - 2020

[Dustin Wiskes]

Hello Everyone,

I am looking to make an offer on an off-market MHP in Wisconsin and would love some help on what CAP rate would be appropriate to use for pricing. I know rates will vary widely based upon park location, size, infrastructure, etc., but I'd love to understand what other folks are using today when making an initial offer to purchase. Here are some details on the specific park:

40 pads, 100% occupied, all TOHs, avg lot rent $250, CSW metered, town size of 5000 (no metro unfortunately, but town does have a Super Walmart about 2 miles from park and a test ad indicated a high demand). What CAP rate would be appropriate to use based on this information?

Thank you for any help!

Dustin