All Forum Posts by: Jacob Hebert

Thanks for the responses guys, I found out that there are about twice as many brand new homes than I originally thought, so separating lot income and then assigning an inventory value makes the most sense, vs packaging the park and just trying to agree on a random cap rate.

I'm working on a valuation for a small 16 unit MHP we will be listing.  The seller bought the park with a few existing units, made improvements to the park, filled the remaining lots with new homes over the last year and now has 100% occupancy.  There are now 16 lots, and around 6 of the units are less than a year old.  They sent over some very basic financials and they don't have the lot and unit rents separated out.  I know to get a decent idea of value we can cap lot rents for 16 lots at the area rate, and come up with a separate value for the unit inventory.  Or do you take the remaining rental income (minus lot rents) and calculate that additional value based higher cap rate, or a combination of both?  Any advice is greatly appreciated!