Valuation of Mobile Home Park

[Michael Baradell]

Hey guys! Curious where you would value this park.. 

Details:

42 Total pads (28 TOH's, 11 POH's, 3 long term RV) Plus a 1600 square foot house that is very nicely renovated

City water 

Septic sewer

Lot Rent is $325 (includes water, trash and sewer) 

11 Park owned home bring in $5225/month on top of the $325 for lot rent

All expenses including water, common electric, septic upkeep, trash, maint, lawn, insurances and taxes, and property management is around $73,900/year

Park is in great condition. Roads are private but were redone with asphalt 5 years ago. Septic just redone 6 months ago. 

Sitting on 5 acres. 

[Frank Rolfe]

42 x $325 x 12 x .6 = $98,280 estimated net income. Those 3 RVs are not what a bank is going to want to see so they better be nice looking and have all the trappings of long term with outdoor furniture, etc.

11 POH are probably worthless as you need to put more money into them for rehab than they will bring to sell them unless they are 1990s or newer and you can get on with 21st Mortgage at a value of probably $10,000 a piece.

Not sure what the stick-built house will rent for since it's inside a trailer park.

I'm guessing your first offer would be around $1.2 million.

But the big question on the value would be the location. Both size of metro as well as housing prices.

The other big item is what the market lot rent is vs. the current rent.