How to determine sales price?

[Sergio Rios]

With a site-built home I can ask a realtor for comps to determine a possible sales price.
how do I determine a sales price with a MH? 
What I’ve gathered:

If it’s owner finance you can just basically pick whatever number you want as there is no appraisal involved. You basically just choose a price and hope it works. That just doesn’t seem logical. 

I can buy a MH for $5,000 and list it for $1,000,000 but I doubt anyone would bite. 

[Frank Rolfe]

Comps are less important with mobile home parks because they are an income property. Most single family homes are not income producing but rather for owner/occupants. Mobile home parks are seen strictly as income properties and the values are derived by a cap rate on the income. In your example, you actually could buy a mobile home park for $5,000 and sell if for $1,000,000 a day later if the property had $100,000 of income when you bought it for $5,000 and the seller was losing all that income by paying the manager an extra $100,000 per year and you then fired the manager and put it back on the market.

The general way to derive the value of a mobile home park is the following formula:

# occupied lots x lot rent x 12 x [.7 if tenants pay water/sewer and .6 if park pays] = NOI. You then apply a cap rate to the NOI and that's your value.