Finding the market value for POHs

[Sam Epperson]

I've got an off market deal with 9/10 being POHs. It's mom and pop, and he's only charging a standard rent. Not charging "lot rent + home rent".

How do I find the market value of the park owned homes? I'll need this to correctly find the price of the entire deal.

Also, after purchasing the deal, is it best to lease-option the homes back to the tenants? What's the best strategy to offload these homes that I don't want to be in charge of maintaining?

[Rachel H.]

@Sam Epperson You'll have to see what other comparable mobile homes have sold for in the area based on condition. I'd start by scoping out other local mobile home parks and talking to mobile home dealerships in the area. They may be able to help you and give you more insight. 

Park managers are key when it comes to trying to figure out the market and determining values whether it be for homes that have been sold or rented. Also, I've found talking to people at the local mobile home dealerships helps as well. Both are great sources of information to learn the market and find out values in this industry. 

Regarding offloading the homes, you may want to see if you can strike up a cash deal with the tenants if that works. Honestly, if you're not interested in fixing up the homes and maintaining them it may be a good idea to just see what you can negotiate with the tenants for them to buy the homes from you if you want to go that route. 

Hope that helps!