Please help with valuation on my first park and provide any thoughts/concerns. I attended Frank's bootcamp and following his guidelines and diligence manual, but want to take advantage of this forum with all the experienced operators and investors out there. Park details below:
56 total lots
54 occupied and tenant owned
1 abandoned POH
1 vacant lot
lot rent officially at $110, but owner bills back the water according to #of people in home ($20 each additional person). So, total rent avg is about $155 per lot. I'm a little confused on this type of billing---as new owner, I would install water meters and bill back to tenants in a more equitable way)
City water with septic tanks
In rural area, but metro area is 250K+ and growing last few years with federal government being largest employer.
Net Income 46,134
Seller asking and will finance $550,000, 20 year at 5.5%, 7 year balloon. 30% down payment.
After my valuation, I feel we need to be at $515,000.