Mobile Home Park Analysis

[Courtney Johnson]

I’m interested in buying a mobile home park. Clearly this one is too much for me but how do you know what one is worth with so many things going on? Lot rent, a few trailer rented and seller financing. If it’s worth less I may be able to pull a few people I know together. Mobile home park $1,750,000 131 lots 86 occupies units: 1 sales office at 3718 Maple Grove Drive, 1 storage unit (converted home), 60 lot rental only homes, 2 park owned homes that are being rented, 15 park owned homes that have been seller-financed to qualified buyers and are owner-occupied and 4 park owned homes that are under renovation and getting ready to be sold or rented. * 45 vacant lots which have all dedicated utilities in place and are ready for homes to be placed on the lot. Tenants pay water & utilities & for yard maintenance. Already have on site management team. $21,778 monthly income Additional potential for additional $9,000 with 45 other lots rented.

[Edward B.]

@Courtney Johnson, it is best to divide each of those up. Value the mobile home park based solely on the lot rents. Apply a separate value to the park owned homes. I would not capitalize those, but rather value them on their actual value minus your costs to unload them. And then value the seller financed homes as notes. Depending on the terms I would like 12%-15% on the notes but that is negotiable based on everything else.

Where did you find the deal? Is it off market?