Price/pad in Fort Wayne, Indiana


#1

Does anyone know of the approximate price/pad in the Fort Wayne, Indiana area?

Thanks!


#2

It depends on several factors like lot rent, demand, net income and deferred maintenance.

Need more numbers to help you out.

Ken Lavoie


#3

Lot rent is 200, demand is average, NOI is about 50k and there is some deferred maintenance


#4

How many lots?
Who pays for utilities? Park or Tenants?


#5

26 lots, park pays for utilities


#6

That’s a pretty general question. Most people on this forum value a park based on cap rate. Use the Frank and Dave formula to determine the value/cap rate (which will come out to around a 10 to 12 cap). Are you a seller looking for a value on your park?

My calculation is $14,400 per lot (assumes a lots are occupied). This could go higher or lower based on the condition of the park and location.


#7

I’m just helping with the due diligence phase. This park is not in great condition and needs some maintenance. What cap rate is currently the going rate in this area?


#8

Tough question. Someone just looking to park money to avoid taxes would pick up a lower cap lovely park. Cap 4%, better than bank accounts… for cash flow, you could buy a pig hole as high as 12% but you may have criminal tenants that have to be babysat more. Mine is somewhere in between. Blue color. Not deluxe, no pool, some older homes but maintained… regular working people.