Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Mobile Home Park Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 7 years ago on . Most recent reply

User Stats

127
Posts
44
Votes
Jon Dorsey
  • Rental Property Investor
  • Millersville, MD
44
Votes |
127
Posts

Am I crazy - Need help analyzing a deal

Jon Dorsey
  • Rental Property Investor
  • Millersville, MD
Posted

After much research I am narrowing in on a few Mobile Home Parks and have started to make offers but the feedback I'm getting from the seller(s) makes me feel like I'm way off in my valuation.

Basics:
Lots: 60 (100% occupancy)

Lot rents: $375 (in-line with market)

POHs: 10 which I don't CAP but pay for separately

Exp ratio: 40%

All in offer: $1.85M

Crickets, crickets, crickets. I think they wanted to hear $2M but I'm not in this to break even and I don't think its prudent to put my formula in front of them to show them the analysis.

Would appreciate a realty check and any guidance going forward from the group.

Most Popular Reply

User Stats

251
Posts
290
Votes
Paul Bowers
  • Real Estate Investor
  • Macedon, NY
290
Votes |
251
Posts
Paul Bowers
  • Real Estate Investor
  • Macedon, NY
Replied

My guess it's just a matter of cap rate.  Looks like you're valuing it at around a 9 cap and they are probably looking at a 7.5-8 cap based on the fact that it's a completely stabilized community. Not sure what you would have to lose by having a conversation about how you're coming up with you number versus where they are coming up with theirs.  Of course keep in mind I have yet to purchase a park so my opinion could be completely worthless! 

Loading replies...