All Forum Posts by: Rich Ferradino

@Laura H. I would ask the park and ask who they use to monitor/repair the lagoon and call them and get some knowledge on it. Also go to the county/city office and talk to the dept. of health or city sanitarian and see what files they have on it, and any issues they foresee with the lagoon. I would assume they would have to get an annual inspection on it.

@Larry Badgley Sent you a PM

@Laura H. They aren't bad unless you know what you're doing and have a backup such as city utilities. The EPA and government hate them, and banks don't like to lend on them either. It's not a deal breaker, but you should know a lot about the lagoon in the park before buying.

It really depends on what the county/city will let you get away with. For example gravel versus paved roads. Water and sewer tapping fees. Is a new plat required.  If it's outside the city limits it's not too bad but in the city expect your costs to be x4 the costs.

90k Principal? what is the value of the asset?

@Dave Blackman I have no clue lol. I have no experience in NPN and no experience in the judicial system.

Then it's just like traditional real estate. Only thing I can think of is to verify that home is perfected as real property. You can find that on the state's manufactured housing website. If not you'll have to probably need the SOL (statement of location)

Also, if you are looking for the value look for MHs for sale in the area, or ask a local realtor to pull comps.

Check out 21st Mortgage. They lend on mobile homes with land.

You need to approach this as a commercial deal so you buy based on CAP rate for MHPs in your market. This is a completely different valuation than SFH but I'll try to relate the two. First off, I would assume the MHP would be around 10-12 CAP. ARV for commercial would be what the current market rates for MH lot rent. So if this park has the lot rent at $250 but the surrounding MHPs in the area are $350 then your ARV would be 350(rent)*12 (months)*12(# of pad)*.60(40% expense ratio)/.10 (10% CAP Rate). Assuming the surrounding parks offer the same amenities.

Be very careful with septic systems/ lagoons/ treatment facilities. Those could be very expensive to replace. Is it on city utilities?

There is a lot more that goes on with valuating a MHP, but hopefully that answers your question.

As @Paul Stout said you have to do alittle research. Are you planning on renting out the mobile home and land or just the land and they own the mobile home? If it's both then I rent mine for $50-100 less than a traditional house. I use zillow and rentometer. If it's just the land then call MHPs in the area with 10 miles and see what they charge.