How to estimate mobile home park taxes?


#1

Hi all,

I’m doing some research on mobile home park investing and not sure where to look. How does one estimate the cost of annual taxes for a mobile home park? Is the amount listed on the county website, similar to SFHs?

Unfortunately I’m not provided that info from the Seller and need to make some sort of determination for the tax amount.


#2

Hi Cliff,
You will need the information on taxes paid and why the seller is not so willing
to share it with prospective buyer like yourself, I would reflect on it.
I know that before we commit to fund a deal we need to know the taxes - amount and balance due.


#3

Understood @Magaway - are there some basic guidelines on how to estimate property taxes?

I’m trying to better understand how taxes work for mobile home parks. Is this correct?

-Purchase price determines Assessed value (anywhere from 40-70% of purchase price)
-Assessed value is used for property tax amount, based on millage rate and local tax rates?


#4

Hi Cliff,
Unfortunately I am not knowledgeable enough on this matter to answer.
I don’t want to mislead you with an answer that may be not accurate.
Check with the county, maybe?


#5

Yes the County will have the assessed value from the prior year. You also have to look up the individual assessed value of Park Owned Homes (POH) for their assessed value as they will be separate as personal property.

If you expect there will be a jump in the assessed value after you purchase you can multiply that by the overall tax rate to get your pro forma tax levy.


#6

The county assessor is your friend. They will politely indicate the present taxes plus if you indicate the price you are paying can tell you what your New taxes could be. When agreeing on a price between buyer and seller for Good Will that will not lower your assessment but could lower your income taxes.


#7

You should count on the purchase price being equal to the addressed value because that’s what the county will base your assessment off of. And if they go higher, you can always point to the purchase price in your defense of what was the FMV.

Then you use that in the “proper” calculation which depends on your state process to determine the assessed value from the FMV. Typically there is a local value (FMV) and an adjustment factor or equalization factor based on how the county relates to the state as a whole.

Then the equalized value is assessed at the local millage rate.

What the previous owner paid is irrelevant but a copy of their tax statements will give you the formulas.

Typically these are public records and available online.