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Mobile Home Park Investing

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Jeremy Peters
  • Winston Salem, NC
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Mobile home park/ single family house

Jeremy Peters
  • Winston Salem, NC
Posted Feb 12 2024, 05:57

I purchased a MHP last year with a SGH ON IT. I’m wanting to know how to get the most accurate value of everything.

What’s the best way to evaluate of the Mobile Home Park and a the single-family house that’s on the same parcel?

I understand how to get the value of the park.. not sure how to get the accurate value of the SFH since it's all on the same parcel of land.

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Replied Feb 12 2024, 07:56

My understanding is comparison sales approach or income approach.

Comp Sales approach is getting comps from area and then carving carving 40% +/- off that price.  To use this approach though a bank has to be willing to finance it though- which is really tricky.

Income approach is take it as a rental income stream and apply a very high cap rate and take that value.  Told me double the park cap rate...

My MHP realtor pal told me this years ago so not sure if it still applies.  Looked at one park and told me to avoid it but if I did want to do it to carve it out on it's own plat then sell it off.  Cheaper than trying to sell it with the park at a discount.

Again this was all 15 years ago... so for what it is worth.  Harder to sell parks with houses on them.

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Mario Dattilo
  • Investor
  • Naples, FL
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Mario Dattilo
  • Investor
  • Naples, FL
Replied Feb 12 2024, 08:25

Include the rental income from the SFH and figure 50% expenses on it.

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Logan M.
Pro Member
  • Investor
  • Provo, UT
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Logan M.
Pro Member
  • Investor
  • Provo, UT
Replied Feb 12 2024, 13:47

I agree with @Mario Dattilo and Roger D Jones.

I think the only thing that I would draw emphasis on is what Mario said because unless it has a separate tax ID number it is not an apples-to-apples comparable.