Then come up with a cap ex plan to get it to be at the top of the market.

This is a 100 percent park owned home park and does not deserve a cap rate under 10% and that's being generous.

For example with an modest increase of $10,000 in NOI, with a cap rate of 10%, property value increases by $100,000.

CRE retail and or mixed use "value add" deals tend to project a cap rate 200 to 500 basis points higher.

This will never affect the number of rentals or have a cap associated, its to hold owners that self-manage are accountable for code issues, trash on street, and noise issues. 

For now, I believe that puts a cap on the loan payment from 10 to 20 years depending on the field you work in. 

@Anh Nguyen You are making the common mistake of using agents that focus on primary residences, which are bought with emotion, versus agents focused on investments, which are bought with ROI.Less than 5% of agents, in our experience, even know how to calculate ROI or a CAP Rate!

There is generally a floor which means you can’t go below a certain amount which is usually 0% (you cant lose principal) And there is a cap which is generally between 8 and 12% ( if you are more than the insurance company makes that difference)In a regular mutual fund you pay for gains and losses.  

If you're doing conventional loans then you will run into a cap and you have to worry about your DTI. 

You can certainly tell the seller or listing agent, "Look, I'm coming up with a cap rate of X based on my calculations, so I can only offer XXX on this property".