Newbie here:
Trying to figure out the calculations to buy a park. So from what I have seen there are 2 different ways to calculate what a ballpark price should be on a MHP.
- lots x rent x 70 (let say tenants are paying for water and sewer)
25 x 250 x 70 = $437, 500 - lots x rent x 12 - expenses x 10 CAP
25 x 250 x 12 = $75,000 (.3) = $22,500 (for expenses)
75,000-22,500= 52,500 with a 10 CAP = $525,000 for a park
So… there is a huge difference in the price. Which one should I be looking at? Am I missing something?