Hello all,
I am looking at a seasonal park in Florida that is occupied 6-10 months a year per the current owner. Its on a lake used by snowbirds. Not sure why the owner has it seasonal as the metro is 100K+. We have asked with no answer. Park is not on the market but owner is asking what im willing to pay.
28 of 34 lots occupied with $180 lot rent. No POH, city water but park pays.
4 RV lots lakefront renting for $435 (again seasonally)
2 homes on the park – 1 renting for $550 and the other $800
Owner currently lives on site and is in her 80s looking for the money to give to her daughter. Apparently the same tenants have been coming down 20+ years.
Thoughts on how to value?
I would use the standard valuation metrics for the mobile home component, and for the seasonal RV’s utilize the average monthly income those lots bring in over a year for the last 3 to 5 years - maybe only 4 months out of the year? Note any trends to confirm things are healthy.
Also consider how you would use this property - if you have no intention keeping the four seasonal units due to the increased management then I would do my diligence to see if converting those pads to mobile homes is a better option and provides the stability you may seek - assuming size, flooding, and other factors are no issue.