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!