Speaking with the seller later today. Please help with the valuation. Park is empty in central florida with lot rents about 250. water on well pump. recessed on dirt road. Its been empty since 2007. Whats it worth and how hard is it to fill? bring in my own units or offer lots for rentals. Thanks guys.
ITs never that easy but you have to start somewhere.
On a financial basis you have to First work backwards.
You have to look at a “WHAT IF I WAS FULL” scenario.
which 13x250x6 is 195k
So FULL POTENTIAL PAPER VALUE is $195k.
NOW THE DOUBLE BIG WHAT IFS are.
- how much $ will it take to get 13 (units), and what kind of units does the park allow.
you have many options but lets looks at JUST 2- IF the park is allowed "TRAVEL TRAILERS’ you go buy 13 travel trailers for $2k each and put them in and "Give them away to people " just so you can get your monthly space rent, or if you dare “rent them out” if you want the headache of repairs.
Then you have to know that its at least another of $300 per unit in time and money to go pick them up , put them into the park, and set them up with water and sewer. You can leave the tanks in them , and let the new owner drop it down the road.
- POSSIBLY make this PARK a 'BRAND NEW HOME COMMUNITY THRU Buffets NEW TRAILER PROGRAM. You would have to call them and get qualified.
just depends what the area demands.
Dirt road sounds like option 1- which I personally love.
NOW THE BIG QUESTION- WHAT IS WRONG With THE ACTUAL PARK?
Is their massive deffered maintenance on all the utilities? and all the underground ABS, PVC, Clay, etc that needs repairs.
Does the well still operate? will the county give you a permit etc.
VERY VERY FIRST, go to the city or county and make sure it is still allowed to be a park and they will issue a permit to operate with absolutely no problems, EVEN make that park of the deal.
Would hate for you to close and then the city says NO.
These are just some what ifs .
run your test ads first .
Thanks very much for your time. I already own 4 small parks in the area. total of about 40 units and i own the mobiles so i know about the repairs. It is grandfathered in as a park. i Just spoke to the owner who has it empty for about 7 years now. he was asking 179k but would do 130k out the door. I have never bought one with this scenario. I didnt know if the valuation would decrease because the lots were empty. thanks again
Based on it’s present income it is worth zero.
You need to determine in your own mind what you believe the land and utilities are worth to you.
Personally I would only offer what the land would be worth for redevelopment. If I could not purchase it for a song I would not be interested and the likely hood is that no one else will be either so if he wants to sell he can take it or leave it.
On the other side you do not want POHs or the class of tenant that involves unless that is the business you are already in with your other income properties.
@jpetrol251 , as per your question concerning:
- “Central FL 13 Lot Vacant MHP Valuation”
You stated that the MHP was grandfathered and that you own 4 small parks in the area.
One of my concerns would be the zoning (grandfathered…but there are currently no MHs).
I would get a Zoning Letter that it is indeed zoned MHP from the local government as soon as possible.
Our of our local cities will yank MHP zoning when less than 2 mobile homes with active electricity are left in the MHP.
There have been newspaper articles where individuals have purchased property that was previously a MHP and the city would not continue to grant the status of MHP.
I know Frank speaks about all the grandfathered MHPs and how cities can not pull their zoning.
Personally, there are a lot of issues with MHPs and fighting City Hall with an expensive Attorney is just not one battle that I would like to face (but that is just my personal opinion).
Now if City Hall tries to take away MHP zoning from one of the MHPs that we currently own, we would fight with all our might.
We wish you the very best!