Posted by GerrryH VA on January 23, 2002 at 22:07:37:
lyal
Thanks for info. Even after reading it I am still a little unsure of EXACTLY what it means. Being an engineer, I understand the formula, just not the full reason for the formula. I’ll work on it:)
Posted by GerryH VA on January 23, 2002 at 17:48:44:
I usually use net operating income (NOI) as a basis for buying properties but I had a guy mention cap rate about a mobile home park. What is he talking about? Also, what is a good ratio for debt (incurred on a MHP) vs. NOI or is there such a ratio?
Also, is there a good due diligence checklist published somewhere for buying a MHP. Thanks.
Gerry,
Go to the financing forum and search the archives for cap rate and you’ll get an education. Good to do this for most questions actually before posting them. There is a wealth of info in these archives and many questions have been asked and answered long ago (asked by people like me…B-]).
For due diligence info go to my answer to Mike further down in the forum with a subject of “Purchasing a Small Park” for pointers to free articles on this site that go into great detail on what to look for.
All the best, Lyal