Is it just me. How hard is it to really value a Mobile Home Park. It seemes a cap rate of 12% is about where most buyers would like to buy a park at.
However how many goods parks are available at that cap rate? They are out there but usually they have alot of of park owned homes(mostly old)
Realistically is it possible to buy a MHP with no park owned homes for anything over a 10 cap rate. I would like to hear how other people are doing trying to locate good parks with decent caps.
If you are looking to value a park I would pick up a copy of the Mobile Home Park Evaluator (if you don’t already have one). Most MHP’s that I have seen have some mobile homes. Make sure and seperate the homes from the land value when determining the purchase price.
A good way to find MHP’s to purchase would be to follow the trail of repo’s. If a park has several repos it usually means that they are in trouble (if they weren’t, they would be buying the repos themselves). Vanderbilt and Greentree will provide the location of the repos on their repo list. If the repo is located in a MHP I would contact the manager/owner and see if they are looking to sell the MHP.
Corey
SNAP! I only pull mobiles for greentree and origen every month…and a lot of 'em come out of the same Parks. ARC is no longer bidding on repos in their Parks here!
I’ll start looking at these Parks harder!
Greg
Corey,
How do I access those repo lists?