10 Cap Well Managed Small Park for Sale

mobile home university
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I’d like to exit my small mobile home park in Arkansas to try and scale up a little faster and would like to gauge the community about how you all feel about this park and likelihood of selling. To break it down:

17 Lot with preliminary city approval to add 3 more lots. 16 POH and 1 TOH home fully occupied. NOI for the last 14 months is $4562.33/mo or annual NOI of 54,748. The park is managed onsite by owner of the one TOH home and has done a fantastic job. He really shows ownership in the park, keeps it full and well maintained. Outside of speaking with him once every other day, I don’t hardly think about the park. The cash flow has been solid, but I would like to take advantage of the equity built up.

So I would like to sell for 525k at over a 10 cap. With this basic information, would it be hard to sell this size park?

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Hi Christian- I’d like to know more… Where at in Arkansas? Though I am super curious: Why did you keep all (well almost all) of the lots POHs???

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Hi Lorean, great question! I think it’s a little two part for me and may be completely baseless… 1. Because I feel a bit more in control continuing to keep them as POH. 2. I have great vendors in the area that are reasonably priced, trustworthy, and do good work. So with the manager, it hasn’t been a headache and I (maybe falsely) make a bit more money from this.

My park is about 30 minutes from Fort Smith.

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@AeroHead32 Feel free to shoot me a private message and I can get you my phone number

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Most operators are inclined to parks that are valued based on a TOH model. I understand that you want to capitalize on the POH income, but $525k for 16 POH is a stretch. What year of build are the POH?

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Hi Manny, Thanks for the input and I definitely get it. The homes range broadly, but I would say average at 70’s-80’s models. With market lot rent of $250-$275. How would you ballpark value it?

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There are plenty of mobile home brokers out there that can give you a good gauge of value. They will be the best resource for you and will provide you some knowledge free of charge. On the hopes that you list and sell with them some day of course.