I’m in the process of analyzing a park, and was looking for some input from the pros.
Park is located in upstate NY, strong demographics.
Occupied pads - 22
Vacant - 1
Average lot rent - $366
Gross income - $96,720
total expenses - $43,830 (45% of gross seems reasonable)
NOI - $52,891
Well/septic water, individually metered
Good condition, approx. 30yrs old, good long term tenants.
Asking price - $574,000 (9.2 cap)
Based on 60/30 rule, I come up with $494,590. Based on 11 cap I come up with $480,820.
Sellers are not interested in carrying back, but are somewhat motivated.
I was thinking of offering $480,000 to gauge interest and motivation - what do you guys/gals think?
I’m still learning the ins and outs of the analysis game, so if I missed anything or didn’t provide enough info, let me know!