I've got a property I wanted to run by you all and get as many opinions on price as possible.
Here are the details ::: 46 total lots | 23 Owner occupied trailers: $500-month |9 Lot rentals: $150-month | 14 Vacant lots | Streets and parking pads are in good condition and paved in concrete | Sits on a 20 acre lake.
Any and all opinions on price would be greatly appreciated, thanks!
Hey Adam, is the park on city water/sewer? This factor will impact your expense ratio, and ultimately the value of the park. Also, do you know the year/general condition of the park owned homes? You will want to break out the lot rent and make sure and only capitalize that amount from the $500/month charged for the park owned homes.
I would do test ads to see how quick you can fill those vacancies.
@Adam Manns A deal like this, id like to really know what they want for it , then see if i can hit their number. Reason being..... Lot of vacant lots, park owned homes with relatively what id consider a low lot rent, low lot rents.... Utilities will matter also.
Then it becomes a question of, is the market like a 400 lot rent and he is 250 below market or the market is 160 and he is charging 260. In case 1, i might be willing to give a value of 10k towards the vacant lots seeing it could be a great market and not a ton to fill a lot with the proper mediums in place. Case 2, ill have to spend a bunch of money only to have a lot worth 10-15k instead of 30-40 k when its all said and done.
Other issues become what are the utilities, age of homes, infrastructure etc. What your are describing sounds like a project. at the right price, could be good but if its a weak market, 200k might be a fair deal. If its a strong market , might be 800k or more......