Valuation help and converting poh to toh

I’ve been looking at a park that has 40 total lots, 29 occupied lots, 18 POH and 11 TOH. The homes are not worth much as they are 20 - 30 years old. If I sell the homes to each tenant for $1,000 each, leaving me a park with 29 TOH. Should I value the park based on lot rent of 29 homes or should I value the park with the number of current TOH (11) and add back the value of each POH? Also, Is there any risk giving away or cheaply selling homes to tenants that are older? Ex. Sell house to tenant for $1,000 and 6 months later the house burns from electrical fire or something unexpected?
Thanks in advance!

I think it is good to get rid of all POHs and getting out off the home rental business. But you will be faced with much of the same problems when you are looking at old junkers only worth $1k. In many cases when the tenant wants to move they will just move, leaving the old home behind. You will then have to go through the process of getting title and the expense of fixing it up so it is good enough to sell for $500 or give away.

Can you provide the current lot rent, market lot rent, and the monthly rent for the POH? How many of the POH are occupied?

You would count the lot rent for all occupied pads (TOH and POH). Do not count any potential lot rents from vacant POH, and do not count the rental income portion of the POH. So assuming all POH’s are currently occupied for Y dollars a month, you would value monthly gross income as 29 x Y. Apply all your adjustments (12 months, xx% for expenses, yy% for cap rate) to get your offer price for the park business, then add whatever you think the POHs themselves are worth (close to zero it sounds like).