Community Opportunity

mobile home university
1

I am a fellow park owner and sales agent looking for some feedback (and possible interest) on the following community recently put on the market (that I have been requested to help find a buyer for). Basic details…

Under-performing community near metro Columbus OH that currently consists of 34 units at $325/month. No utility bill back currently. 33 additional lots developed for homes but currently vacant. Licensed for 96 total lots. Poor management has led to this park’s decline. A nearly fully occupied community is right next door to this one. Located near exploding suburb (Grove City).

20 acres, 15 zoned multi-family, 5 commercial. New interstate interchange 4 miles away with huge hospital expansion being constructed.

County sewer with new county built sewer lift station. Currently private water, but public water supply about 1 mile away.

Owners seeking offers vs establishing an asking price as they want to see what the market bears and look at this as not only a possible MHP sale, but a development opportunity as well.

I am interested in getting opinions from the forum participates on estimated value and would love to speak with anyone that thinks they may have interest and want more information.

2

34 x $325 x 12 x .6 x 10 = $795,600. That’s the value of the existing park. Your upside is 1) billing back water/sewer 2) raising rent (don’t know the comps) 3) filling vacant lots and 4) the inherent value boost when you get the park to stabilized occupancy (basically 80%+).

We obviously prefer city water, but well is OK if you are very proactive on that issue. One mile is pretty far away to make economic sense of attaching to city water.

Another wild card is the remaining land outside of the park. One word of caution on that: the land adjacent to a mobile home park does not sell for much as it is “next to a trailer park”. Every time we used to value the land in the old days we were off by as much as 100%, so we give it almost no value today, unless you can subdivide and sell it off on the front end, and it has a strong enough location to overcome the “trailer park” negativity.