Do lenders still place no value on POH Income? Lender recommendations in TN?

I’ve read many articles on valuating POH income and just wanted to get a gauge on today’s market where there seems to be even more attention flooding the MHP space. Are lenders still placing no value on POH income?

I’m looking at a park where about 50% of the homes are TOH and 20% are RTO. It’s more than 90% occupied. We’re looking to put anywhere between 50-65% down. In our valuation, should we still place no value on the POH income?

Your question has a blanket statement built into it suggesting that lenders don’t place value on POH income. I would say that experienced lenders in the industry are more apt to disregard that income, but I have found that smaller banks inexperienced in the space do place value because they don’t always understand the difference or know to separate the revenue streams.

Park owner here in TN. The two banks I have dealt with go more by the appraisal value and omit the POHs. The appraiser noted they do not consider POH rents when considering value. The park value is based on the land, improvements, and lot rents.

I have looked at purchasing another park but most sellers want top dollar because of mostly park owned homes and consider rents of POHs into the value. I’ve put in a few offers explaining this, but the seller does not want to hear what I’m stating. I guess the parks will just sit there till someone with cash comes along or owner financing can be obtained.