Mobile Home Park Valuation

[Korosh Major]

Hi all,

Thanks in advance for your replies. I have been cold calling MHPs for a few months and I have successfully wholesaled one park but in looking at others I see a lot of owners value their park owned homes rental income into the cap rate. The buyers I have spoken with only value the lot rent into the NOI. So for a park with a POH rentals of $600 but lot rent $160, they only value the $160 in the NOI calculation. I believe this is how banks also value but wanted others opinions. FYI, I have taken Frank and Dave's MHP bootcamp and I know they also only value lot rent. Thanks again for your opinions!

[Jerry Lucker]

@Korosh Major

Frank and Dave are right :)