Need guidance on valuing park. I have been to bootcamp and now am looking at parks.
20 pad park
14 units occupied with 13 POH
lot rent 285 (market approx 340)
POH rent approx 600
4 empty homes, 2 vacant lots
average market---- not super
high water and repair/maint.
other expenses higher or average
asking price 270,000
I feel by addressing the water issue by checking for leaks and submetering and selling back the homes to tennants I can reduce my expenses drastically and come to a more realistic mgt of this park.
so: 285 x 14 x 12 x.5 /.12 = 199,500 + 28000 for 14 homes = total 227,500
but when I use current number I get a park value of 9000 + 22000 (homes) = total 31,000
Should I discount the 199,500 value to account for my better management? I feel as though I am paying for something that should have already been done.
Thanks in advance for any help.