Mobile Park Analysis

[Fayez Jangda]

Hi, I just want to ask for your insight on this mobile park deal our team is currently working on. It has 8 units, but only 1 of them is occupied and it is tenant-owned with $150 rent/mo for the lot. There are barely any comparables for mobile homes in a park in the area which could help us gauge the possible rent/POH and complete our analysis. Also, we are using the Mobile Park Calculator that we got here in BiggerPockets, and since 7 of the 8 units are not rented right now, the numbers are really pretty low on the calculator.

Any suggestions?

And if you have any other mobile park analysis sheet/calculator that you want to recommend, we'll be very happy to check it out. Thank you!

[Mark Wooldridge]

Try comparing 2 bedroom apartment rentals as those will likely be your primary competition if there are few MHP to compare with.  Figure out a price you think will work, Then run an advert on Craigslist or similar to see what kind of interest you get - you can always say 'sorry, that one you called on is rented but I should have some more coming up soon?  would you like me to contact you when that happens?  Keep in mind the rule of thumb is 3 calls converts to one visit, 3 visits convert to one sale.  That should get you a sense of the market.  As for valuation, you would be doing all the work to fill it up, so that increase in value should be yours - don't give that to the seller.  Valuation should be based on 'as is' cashflow - you may need to kick in a little to make the deal, and knowing your market will give you a range.  The houses themselves, depending on condition - is a guess - but by themselves they are not worth all that much...