I'm confused on how to value a MHP
Most MHP I see for sale have 60, 70, 80% MHP owned homes. The sellers show the NOI for the lot rents + rents on the mobile homes, and then CAP that at 10-15% and put it up for sale.
Isn't the proper way to value these homes from a buyer's perspective is to take NOI from lot rents + current sellable value of park owned homes and then CAP that?
If that is the proper way to value MHP as a buyer, but the seller has a totally different way of valuing the MHP, aren't we starting the negotiation from two vastly different perspectives to begin with?
I would think within the MHP industry, there would be a standard way of valuing them so that the buyer and seller could negotiate from there.
What am I missing?