Help me with MHP Value

[Travis C.]

Here are the vitals:

48 lots

31 occupied with a trailer on them, Average lot rent is $200

13 trailers are owned by the park with 2 of them needing work(8-9 of these are currently rented out) The total rent is $550 on these so basically and additional $350 over lot rent

3 trailers are owned by me (two are rented out and 1 we just bought is being updated/fixed up and should be ready next month) Average is $500/month but I am paying the $200 lot rent on them.

Park also has a 5 spot RV park as well as they use empty lots for RV occasionally

There are two buildings included, one is a medium sized pole barn rented out for $150/month and the other is a 3 stall storage unit that brings $300/month

This is in a smaller rural town, lower income housing is always very high demand in the town(population around 2500).  The owner has owned it for around 30 years and is looking to get out and has approached me about purchasing it.  The majority of the trailers are older but the ones owned by the park have all been updated with new roofs, water heaters, entryways, plumbing in the last 5 years.  Water, sewer,garbage is included in the lot rents.

What do you think the seller should be asking for a selling price?

Thanks for any input.

[Alan Majors]

Travis, 

Have you done anything with this deal?  Typically, I'd value the current lot rent, but assign a low value to the park owned homes.  17 vacant lots is your upside, and again don't overpay for it.

Are there other parks around that you could compare lot rents to?