Individual spaces for sale in (condo style) mobile home park. How to value?
Hello everyone,
Mobile home is for sale in a park which includes the small amount of land under it. Looks like all the spaces in the park are designed like this. I think the concept is called a condo conversion of a mobile home park.
Each space still needs to pay a $100 HOA for maintaining roads and amenities.
Question: How would you value this space/pad? Would you base it on what a comparable park would charge for the same space minus the current $100 HOA?
What do you think is the best use for these types of properties? Package the land and mobile together into a single loan for resale? Sell the mobile and charge lot rent? Sell lot and mobile together but as separate loans?
Thanks for the help.
Comparable space rents seem to be around $450.
What about pitfalls? Non-obvious red flags?
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#3 Guru, Book, & Course Reviews Contributor
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Unless there were comprable sales in that park I probably would not give the land any value due to the HOA fees, depends on what is provided by the HOA.
I would sell the home and land together under one note, you might check as to the assessment for taxes as these may be considered real estate and not personal property, if so, you'll have to do one note.
Why would you do it seperatley, you could have a default of the home and the land would be current, paid as agreed, how would you take the home without the property....? LOL
The red flag I preceive is that you should get some assistance locally to structure the deal.