What's the value?

[Tom Kirchner]

I'm new to mobile home investing.I've done some homework and have an idea on how to value parks but would like to get opinions from you who have more experience.I was hoping to get feedback on what this is worth and what I'm missing?

It's not a pretty park,basically rural and low income.

It has 24 spaces including 24 mobile homes which are park owned free and clear(value $35,000).Currently 19 are rented for an income of $9400 per month.The other five still need some work and permits and need to be put on pads at an estimated cost of $9000 total.The potential income with the five is $11- $12,000 month.

I'd like to use a 40% expense ratio(owner claims much less)

I asked about maintenance issues and he says it could use some landscaping,painting and may have to buy two new septic tanks soon.I'll use $10,000 as an estimate.

Please let me know what price you would put on it assuming a 10% cap rate.

Thanks