Formula for valuation?

When looking at purchasing a MHP, what formula would you suggest? Currently looking at an off market park, an 18 pad property (17/18 occupied) who all own their own homes and pay lot rent only and their own utilities. Decent two story stick built home for owner/manager on property, gravel roads. City water and sewer. If they said “make me an offer”, how would you start to asses a value? Thanks

Try to get an asking price. If they won’t give you that…

Lot rent X 12 X 17 = gross X .4 expense ratio = NOI , then calculate an 8-10cap based on location to get an offer price

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I appreciate the information. Makes sense!

Yikes! That formula should be a .6 (or a .7 if tenants pay the water/sewer) instead of a .4

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