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Updated about 1 year ago,
Need Help with Off Market Mobile Home Park Assessment
I have an opportunity to purchase a mobile home park with 16 rented lots. The owner doesn't want to price the park. He wants me to give him an offer. I want to make sure I don't give him too low where he wouldn't want to deal with me.
| Current Revenue Info | |
| Rent | 150 |
| Units | 16 |
| Total Rents | $ 2,400.00 |
| Total Rents/Y | $ 28,800.00 |
| Expense Ration % | 30 |
| NOI | $ 20,160.00 |
| Monthly Mortgage Payment(Assumed) I am aware this can Vary | $ 1,500.00 |
| Yearly CashFlow | $ 2,160.00 |
The lot rents could be increased to $200 - $300. I am not sure if the expense ratio I am using is okay or not. The owner is paying for Trash $300 a month.
What would be the ideal cap rate I should look at when offering a price to the seller? Any other suggestion would be greatly appreciated.
| Future | |
| Rent | 200 |
| Units | 16 |
| Total Rents/M | $ 3,200.00 |
| Total Rents/Y | $ 38,400.00 |
| Expense Ration % | 30 |
| NOI | $ 26,880.00 |
| Monthly Mortgage Payment | $ 1,500.00 |
| Yearly CashFlow | $ 8,880.00 |