Looking for evaluation for our park. Park has 45 pads, 30 rents (3 POH and 27 lot rents). Gross rent roll is $7200 a month/$86,400 a year. Lot rents run $180-$225. POH are from $475-$550. Expenses run 30% a year. 15 additional lots are ready for inventory. Septics have been evaluated and located. Check out fine. City water meters are located and utilities are not metered through the park, but tenants set up their accounts with the utility company. Park is close to major commercial - Walmart 4 miles. Long term tenants in place and have 3-year financial history. Homes are 1980’s and 1990’s. County allows for single wide older homes.
I sent you an email about this park
I think a lot depends on the metro it’s located in, and area lot rents (is there room to raise rents for a new owner)…
Quick math - 12 (months) x $200 (avg lot rent, POH income is not capitalized by banks or most MHP investors) X 30 = 72, 600 X .6 (standard expense ratio-often below 35% park owners leave out expenses others would incur) = 43,200.
43,200 / 432,000 = 10% cap
43,200 / 540,000= 8% cap
- 15,000 for the 3 POH = $447,000 to $555,000 would be the price range for me.
However, there are others who have been doing this longer than me, so feel free to point out any differences.
email@example.com - happy to discuss it with you. Or 859-285-2103
Have you considered upping the lot rents? They look low for most markets.
Up the lot rents and the valuation will go up.