I own a park which was built in the 60s with one parcel on 0.69AC consist of 8plex, single family residence, 2 car garage dwelling, and 3 RV pads. Another 3.03AC parcel consist of 45MH pads. Both parcels have roads, sewer, gas, water, electric, fence, and signs. It doesn’t have to be exact figure but what ratio would you use for depreciation purpose? Thank you for your input!
What is the land value versus the infrastructure and improvements value? Did you have an appraisal, or what approach are you using? There is not a standard formula and the land value combined with your purchase price need to be taken into account.
Appraisal was done in 2017 and it appraised for $1.45 for both parcels. Currently county assessed value for the 8plex parcel is $156k for the land and $54k for the improvements. For MH parcel, $396k for the land and $114k for the improvements. I’m just trying to come up with fair ratio for accounting. Thank you!