First MHP, longtime investor. I understand MHP’s are valued differently than SFR’s.
I have a 7 unit MHP with 4 units from the 60’s and 3 units from the early 80’s. im renovating the 80’s units, but think the 60’s units are too far gone. It’s on well and septic. septic is old, well needs work. road needs work.
Im considering the following options and exit strategies, and struggling to determine potential after repair value once the parks issues are fixed. sold Comps are all over the board.
ultimately, I’m thinking we’d like to sell the park, unless the ARV is low enough that keeping and leasing make more sense.
option 1; sell old 60’s units to tenants to rehab. make those TOH’s. could also sell other units after rehab to tenants. get park fully occupied and sell.
Question - is it worth it to get these 80’s units rehabbed and rented as POH’s or just sell to tenants and let them repair? will a buyer prefer POH or TOH? which will have more value?
option 2: just clean it up, fix road, pump septics, etc, let new park owner choose what they want to do.
Relevant data;
market lot rent is $450
market rent for a 2 br MH is $1300-1500
Sec 8 is 1600
How do you evaluate value based on different factors including TOH vs POHs?
Whats your take on what we should do with it and why?
Thank you for your time.