I recently came across a park with the following details:
85 Pads $370/month
Area pad rents are between $440 and $485
There are 14 park owned homes with two homes on rent to own and two homes vacant. The owner has been selling the park owned homes either for cash or on a rent to own.
Taxes are $45k/year
This park is on city water but a private sewer. It is located very close to the city and has good access to grocery stores, restaurants, etc. The owner has owned the park since his family opened it in the 1960s. He is ready to sell it but hasn't come up with a price. Park is in decent shape. Some of the roadways needs some work. Most of the park is asphalt driveways. The park could use some new fencing, increased lights, and better signage.
How would you value this park? The current tax assessment is $2.2 million.
I am thinking of writing him up three offers.
- All-cash offer
- Half cash/half seller finance
- 1/3 cash, 1/3 seller finance, 1/3 bank loan.
Thanks in advance for any advice!
