Park Evaluation on 40 plus park


#1

Looking at a park with 45 park owned lots. Currently 12 POH, 7 lot rents. 27 titles come with the park, 15 homes in need of repair. Tenants pay directly to utility company (water & electricity), septic on site. Cash flow is $78,360.00 annually. POH rent in the $450 range (includes lot rent) and lot rents are $180 a month.

I understand there may be a couple of more lots attached to property, but working on the 45 lot number. Expenses are 35% and renovation of the park has been completed and after visiting the park it looks to be a clean, well kept park. One of the streets in the park has many vacant homes and they have blocked it off. Said this is the next phase to start repairs/replacements. Vacancy is high with the 15 homes needing repair. The owners are repairing and replacing presently, which will make the price go up each time they repair and replace. They have onsite management in place and a renovation team they are willing to leave in place and manage it for a year for the new owners. Have to see about arrangement, but their renovation numbers on recent park homes look reasonable.

Trying to understand the valuation of the buy, but also how to plan for the future with 15 homes to add with repair and 11 additional lots without homes on them.

Any help evaluating would be appreciated.