Back and Forth Trying to Find and Appropriate Value on my MHP
Good Morning/Afternoon BPs! Recently your forum was suggested to me by a coworker who figured no better place to come and ask for advice. So please forgive me for having such a new account! I am struggling to find a realistic value as me, and my partners would like to 1031. A little information and back story.
I purchased a pretty rough almost 11 acre parcel in a tertiary market located in the UP. We have since improved the property into a suitable MHP. There are a total of 13 lots with city provided utilities & sewer, and natural gas. 5 are currently park owned homes. 2x 2024's 2x 1990s 1x 1970/s. All older homes have been completely rehabbed and rent at a very solid rate(new roofs, new hvac, new floors, new paint, all the repairs to warrant a decent rent. The 2024s were purchased new and installed by us last year. There is the immediate availability to infill 4 more lots with park owned homes.
GOI: $85,320.00
Annual Expenses including property taxes: $22,800.00
NOI: $62,250.00
Land: 10.6 acres zoned commercial (highway frontage) & multi-family residential. Parcel is divisible.
POH: 2x 2024's 2x 1990s 1x 1970s
TOH: 4x 1990s-2000s homes
Potential rent from additional homes:
$1200/$14400 or all TOH
$4000/$48000 for all POH
$2800/$33600 for 50/50 mix
My problem that I constantly run into is that I PERSONALLY think that I could maybe sell @ $549,900.00.
Everyone tells me that is too low based off of cap rate alone.. I don't care to have my stuff for sale for 300+ days and try to sell off of cap rates. I know it's a good place to start your train of thought in the purchasing pipeline, but it isn't the deciding factor ultimately. We would prefer to 1031 and move to a different region of the country, but we aren't forced to.
Hoping for solid advice on where it would actually be appealing to potential investors or owner operators. I appreciate it all greatly.