When analyzing a park - how do you include seller financed homes?

[Brandon Turner]

Hey folks - 

So, I'm looking at a park that has a dozen "seller financed  homes" in the park. These tenants are paying around 200 a month for the seller-financed part of the loan. I'm unsure, as of now, the terms on these loans. 

Any tips on how to analyze with this income? Do I leave it out, since it's not really income for long? Or do I just add in the total note values like they are an asset I'm buying? 

Any tips? 

Thanks!

[Dmitri K.]

@Brandon Turner, i am new to MHP. But the general consensus that i've read about it is to value notes at the real home value. If the note's face value is 20k and the NADA's home value is only 5k - you would not want to overpay for the note as the chances of the renter's default on the note are pretty high.

I probably also would not value the interest on the note much - again because of the high default rate.

So i guess if the note is in line with the actual home value - you would only pay for what's left on the note.