It's fair to assume that every number in a proforma from a seller and her agent is groomed, even if they appear to be providing numbers down to the penny.I recently made an offer on a mobile home park that was listed with a CAP rate of 7.5, an huge number that causes a stampede in California.

You'll want to calculate a cap rate.  

See a cap rate is NOT a return but the measure of what a market is paying for NOI.

Often there's a cap amount stated.

Thanks.Financed properties with a cap rate of roughly 10% or greater will provide a 25%+ cash on cash return.  

I think given the market it's in and the size we'd like to set a cap at 3 people per unit.  

On small properties 10 units and under - all you really need is a rent roll, as expenses can throw off a CAP very easily.

And if there's a cap-ex hiccup that comes along there's no equity for the <insert form of debt here> to cover that.  

There are plenty of lenders out there that don't have a cap on the number of properties owned.  

Lots of time something can look good on a cap basis but if that tenant leaves can you get the same rent?