@Brandon , as per your post:
- “I think I would say Demand and Deferred Maintenance are the two biggest drivers of value of MHP.”
Brandon, I totally agree with you…“Demand and Deferred Maintenance are the two biggest drivers of value of MHPs”.
Unfortunately, there are some Sellers and some Buyers who overlook Deferred Maintenance.
We were once evaluating a MHP with approximately 10 Park Owned Homes. Yearly Maintenance was roughly $1,000 Total for all 10 POHs (=$100 Per Mobile Home Per Year).
Thus, there was LITTLE to NO Maintenance being done on the POHs.
I raised this issue with the Seller’s Real Estate Agent and the Seller’s Real Estate Agent finally agreed that…yes…there was little to no maintenance being done by the Seller.
This means that the New MHP Owner would be receiving lots of Park Owned Mobile Homes needing lots of repair = lots of time and lots of money. In addition the New MHP Owner would receive probably not the highest quality of Tenant.
However, on the opposite side of Deferred Maintenance what if the MHP Owner spent lots of money upgrading Park Owned Mobile Homes?
These POH expenses would look “bad” on the Profit and Loss Statement, but the same expenses would be a great asset to any New MHP Owner.
“Deferred Maintenance” is a HUGE area that both Sellers and Buyers of MHPs need to evaluate and understand.
We wish you the very best!