I am looking at a park with 200+ pads in a decent MSA market. Though each pad was developed decades ago for mobile homes, the park currently has about 30 RVs and the rest of pads are most occupied by mobile homes. I was told some RV residents are seasonal, but some are long term residents. I’m about to give an offer, and wondered how you guys would valuate the RV component of the park? For valuation purpose, can we use the same formula as used to valuate those with mobile homes (i.e., noi x 10 cap), or shall we discount the value of such pads just because they are occupied by RVs?
My initial thought was RVs are more likely to move than mobile home, so the rent may not be as stable as mobile home, but how exactly the industry valuate those? Thanks