Apr '25 • Underwriting / Diligence
Exit Cap Rate for Underwriting
I have noticed that the percentage I enter into the exit cap rate cell has a significant impact on the amount I can pay for the park.
The question is, how do you all determine that exit cap rate? I want to sell or exit at a lower cap rate than I am buying at.
For example, if I buy at a 10 Cap on accruals in 5 years, I want my exit cap rate to be 6-7%. I know you have to take into consideration the area and park amenities. Thoughts?
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Exit Cap Rate for Underwriting
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