@Gulliver R.Mobile home park's differ very substantially from real estate with buildings on them.Taxation differs as it depends on if you own the trailers/houses on the land.There are potentially more components in a mobile home park that may be eligible for bonus depreciation.Something to consider when speaking with your CPA.

If active, you are forming a basic partnership and defining roles and ownership.  

I would really take time to define your short term and long term goals.

Your first steps are to define your goals (and mean more than monetary terms), and define your investment strategy (you have named every BRRRR investor's dream criteria so expect competition). 

You never defined the neighborhood for this property but did point out comps in a C class so I’m assuming this is B or better.

@Anthony Rosa - I'm still in the learning phase and working through deals to define my cash flow objectives.

As I am actively working to get a new rental property, I am trying define what I am comfortable with as a first time investor. 

You could buy one that's moderately priced and needing some cosmetic updates, so there's some value add component. 

If you have verbal or signed relationship that defined client customer and realtor rolls, I'd fire and report to state oversight.

That goes to show that such an operator is being conservative by modeling in a declining cap rate environment, because if they don’t add value in one way or another, and therefore get that NOI up, and if the cap rate expands, they will LOSE money.So bottom line, if in this case they can live with a 5.5% cap rate AND sell for a $25m profit in 4-5 years, that shows the power of the value add component and the ability to torque the NOI up way past where it currently is.Response: Typically, appraisers will generally add 5-10 bps per year on the exit cap rate.