Need help putting a value on a park - MHP

3 Replies

Hello everyone,


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.

@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......