Mobile home park valuation
I am looking at purchasing a mobile home park from a friends father who is older. . It is run down due to his age. This is the situation there are 40 lots, he owns two of the trailers only 10 lots leased he is getting $150 per lot. There is a moratorium on mobile home lots in the area but I have already verified with planning and zoning his is grandfathered in. A 20 mile radius the range is 185-225 per lot water garbage included. Rent for park owned trailers very depending on condition of community and trailer 675-$850 per month including lot fee. Nicer communities at about avg 80% occupancy really nice are full. Moratorium is now 2 mobile homes per one acre.
It needs road repair about $7-9,000.00 (depending on fill/gravel, speed bumps), new entrance , landscaping, school bus/ mail box covered area $8-9,000.00, upgrade electric boxes and poles $12,000.00, add city water $3,000.00, new pumps for sewage plant $3,000.00. About $40,000.00 upgrades and redeveloping costs. I am a contractor and can do work.
Projected Yearly costs
property taxes once bought $6,000.00
Insurance. $2,500.00
Maintainace grass landscape. $6,000.00
Self Management
Based on this general information what would the mobile home experts say a fair purchase valuation be and also I would like to purchase around 10-15 mobile homes to set a general standard. Any advise on this also.
Thanks for your help,
Robert