Is there a quick way to value the homes that are being sold with a park?
My thoughts were 2 ways, the first was to get out the book and figure the value on each one but the problem I was having besides the time factor was that there is not enough information provided from the listings.
The second thought was to run the numbers backwards knowing what I could charge for a monthly payment based upon the lot rent and the avg. 2 bed apartment rent in the area, then I could play with the term of the loan and the interest rate.
Then I questioned that method due to the fact that the homes range so much in size and age…
Looking for some input…any and all would be appreciated.
Paul
I go to the wholesale value of a home in my park. In my park it costs between $12000 and $14000 to buy a single wide 1995 or newer repo and set it up for sale. I would try to never pay more than that cost. This cost varies from area to area. You need to know this cost as part of your due diligence. I place a lot less value on older homes if any value at all. You must always consider what you can ultimately sell the home for and make reasonable profit. Hope this helps
Thanks for the feedback and yes it helps. I will start doing my research on Repos in the area.
Paul
and what we are figuring is 10 times the monthly rental amount less lot rent so for a s/w at 600 per month less 200 lot rent 4K. For a d/w at 850 per month less 225 lot rent 6,250…this works for me!
I don’t know of a more equitable way to value…NADA is useless for older homes.
Good Luck,
Greg Meade