The same park. Three cap rates. Three very different prices.

This model assumes $150,000 of annual net operating income. NOI means recurring property income less recurring operating expenses in this example. Debt service, income taxes and capital-event distributions are not included. A reserve for capital works should be disclosed separately rather than silently moved into or out of NOI.

At illustrative capitalization rates of 6%, 7% and 8%, the same $150,000 supports indicated values of $2,500,000, $2,142,857 and $1,875,000. These are calculations, not evidence of what a buyer will pay.

For a real review, reconcile billed rent to receipts, isolate vacancy and collections, separate home-rental income from lot income, and identify one-off items. Explain any expense changes using documents or quotes. Each adjustment should have an owner, source and reason.

A rent gap is not automatically new NOI. Timing, collections, recurring costs, capital requirements and applicable rules all affect what reaches the bottom line.

• Record the starting NOI and measurement period.
• List each adjustment with a source; do not net away uncertainty.
• Keep current operations and future operating scenarios in separate columns.

A one-percentage-point change does not cause a fixed percentage change in value. With constant NOI, moving from 7% to 8% reduces indicated value by 12.5%; moving from 6% to 7% reduces it by approximately 14.3%. The starting rate matters.

Use verified comparable transactions, financing constraints and property-level risks to decide which scenario deserves attention. Do not present an asking-price cap rate as a closed-sale comparable.