# @derekvickers885 on Instagram

- **Type:** Video
- **Original URL:** https://www.instagram.com/p/DdKEd9SDFRv
- **Gondola URL:** https://gondola.cc/posts/70459400-derekvickers885-instagram
- **Thumbnail:** https://img.gondola.cc/tr:w-,h-,fo-auto/postThumbnails/e6b1085aa9.jpg
- **Posted:** 2026-09-11T18:37:41.000+00:00
- **Account Owner:** Derek Vickers (@derekvickers885) — https://gondola.cc/derekvickers885

## Caption

The Cap Rate Trap Most Investors Miss

A higher cap rate does not automatically mean a better investment.

That’s one of the easiest mistakes to make when evaluating real estate.

A cap rate is a snapshot.

It tells you what a property is producing today relative to the purchase price.

But it doesn’t tell you why that cap rate exists.

A Mobile Home Park might trade at an attractive cap rate because:

• Expenses are being underestimated
• Collections are inconsistent
• Infrastructure needs significant capital
• Occupancy looks better on paper than economically
• The market carries risks that justify the higher return

This is why we don’t look at Mobile Home Parks as properties that simply produce passive income.

We look at them as operating businesses.

The real questions are:

Is the NOI sustainable?

Where can operations improve?

What capital will the property actually require?

How much of the projected return depends on execution versus market appreciation?

And what happens if our assumptions are wrong?

Cap rate matters.

But it’s one number inside a much larger operating picture.

You don’t make money because you bought a cap rate.

You make money because you bought the right business, at the right basis, and executed the plan with discipline.

That’s where durable returns come from.

#MobileHomeParks #RealEstateInvesting #PrivateEquity #CommercialRealEstate #AlternativeInvestments

## Stats

- **Views:** 84
- **Likes:** 4
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## Tags

privateequity, commercialrealestate, alternativeinvestments, realestateinvesting, mobilehomeparks

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