All Forum Posts by: Swis Stockton

I do suspect the current owner was expecting to invest in trailer upgrades to permit renting (which he did).  But I think you are likely right that he was surprised by having to spend so much on septic system repairs and well pressure tank repairs and the like. 
Thanks again Dave!

Thanks for the thoughts Dave.  Great ones.  Much appreciated!

Chase
Thanks so much for that.  So very helpful.  It brings about two final clarification questions:
1) So the rents for the MHs and the house(s) are not included in valuation at all?
2) Any idea about shell values for older rehabbed MHs in rural Virginia?   I would guess the shell value for an older rehabbed MH would be fairly limited to what someone onsite is willing to pay and make it theirs (because they have little true value left and moving them is so expensive)?
Chase, thanks again for your help, already have a much better idea about valuation of this wacky property and for deals moving forward.
--Swis

Hey all. 

I'm also a total first timer, been looking for first RE deal for 14 months, nothing so far. I recently came across a MHP offer on the MLS near my home and am having trouble analyzing the deal because there is a mix of POHs, TOHs, and actual rental houses. Could I get some thoughts from the community with some experience in the matter?

This MH property appears complex: It is a rural, older, class C/D, unpaved parking type place with no real landscaping.  Very few trees/no significant tree hazard.  

--14 MH lots:  4 empty, 1 with a very old trailer that needs redo or removal, 7 Park Owned Homes (POHs) with recent rehabs and new heat pumps-(rent $800 each), 2 TOHs pad rent 430 (400 + 30 water).

--There is also an old school house with metal roof turned duplex that brings 1200 monthly.  

--Also and an old 600 sq foot 2bed/1bath house that needs ~10K to get it rentable and bring at least $500.

Total Current Gross is 7600, this does not include the small currently unrentable house.

Expenses: 
They have offered very little in the way of expenses. They kept poor records.  Very few trees to worry about. River nearby but flood insurance very cheap.   Two wells on site. (one new pump and pressure tank), two septic systems pumped by county for ~100 month. 

They are asking  500K.

To make things more confusing, they are they are offering adjoining property with a 3/1 house for additional $160K, should bring $1200 rent.  So total for both lots asking price is $660K. 

The current owner bought both props 18 months ago for $455k (290 and 165k).  He spent ~ 100 K in repairs to septic, water systems, rehabbing old trailers as above, and getting poor clients out and bringing in dependable ones. 

What I do think I understand:  I know it will cost a lot to bring in more trailers. And I know there are too many POHs.  And while the actual houses may count as real property, i dont knwo how to bring them into the analysis for valuation.  My ideas about this have been all over the place. I have used several calculators but the duplex and house(s) make it tricky. Make an offer for both properties and then dig into the due diligence? Run away fast? Take a vacation?

Any help from experienced folks would be greatly appreciated! Thanks!