Will appreciate any advice on how to estimate price for very small park
and also opinion if small parks worth efforts at all.
We are currently thinking of starting to invest in MH parks, but since we are very new to this business and have a limited finances available, we are thinking to start from small park down south, in Florida.
I contacted owners directly and found a park in north-central part of Florida that is pretty small 1.5 acres and 9 pads, 2 tenant-owned homes and 7 park owned homes. All pretty old - 1970-80.
Owner is 73 years old and has no idea how much it worth and how much he wants for it. He is also willing to consider financing.
Lot rent for pads is 250/month for tenant-owned homes, and those seven homes are rented 400-600/month.
Major con - no public utilities, well and 2 septic.
Assuming pad rent is 250 and all are rented the estimate value would be about 140k or even more..
And county appraiser says about 132k as well, but honestly for that part of Florida it feels like too much...
So should I make offer for like 40% less then max value?
Rents for lots already are on market level for that part of florida, so price of 140k for this property likely be top for what we could sell it after...
We are hoping to have small park like that just to help support our family (and hopefully have some more time with the kids) and we are ok with little cash flow, but of course we don't want more trouble.
We still to come and see park but since its 2000 miles from where we currently live I'm trying to get all info I can before coming there (however we plan to move to Florida later).
Thank you for your input!!!