5% cap rate = automatic pass?
Wrong.
Here's how to turn "ugly" deals into winners:
β
Work backwards from your target return
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Negotiate price OR identify rent upside
β
Run realistic scenarios - can you hit $400/lot?
β
Don't get emotional about seller's asking price
Most investors miss deals because they only see current numbers, not potential.
That $1.6M park at 5% cap? Could be a $1.2M deal at 8% cap with the right negotiation.
Or maybe those lots can easily hit $400/month with basic improvements.
Stop chasing "perfect" deals. Create them.
What's your minimum cap rate rule? π
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