I’ve come across a few MHCs with a good number of POHs in them. The problem comes that the seller is CAPing the POH rent which can be pretty substantial.
Physical Occupancy: 60%
Economic Occupancy: 100%
POHs: 30 (mid-late 2000s models)
GI Lot Rent: $360k
GI POH Rent: $162k
Exp Ratio: 40%
How are you approaching these properties in today’s environment when it comes to valuation?
If you don’t include POH rent in valuation, how do you present/discuss this with the seller?