I have a small 7 lot park on 1 acre , with a 2,800 sq ft shop , location is excellent,
7 TOH. Lot rent is 30 percent below market value . Thinking of possible putting it on the market . It located in city limits in South Carolina, any ideas of current market value?
What is your lot rent and what is market?
200 now
&
300 is market
One opinion here:
200712*.70 at a 7cap = ~170k
200712*.70 at a 6cap = ~200k
This is a very rough estimate given the little information. UpnAway, what number were you calculating/thinking?
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Thanks MHPUser , in the upper 100’s for sure, When I do list , it’s probable $200
Raise your rents first and you can sell higher. Might as well do it to benefit yourself since it will be the first thing a new owner will do.
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Where did the 200712 come from? Using the info given I’m confused. just trying to learn.
That’s $200 x 7 homes x 12 months x .7 profit
200-7-12
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Hey, thanks for clearing that up for me. Thought that was one big number. Duh!
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PARK OWNERS… You are not doing yourself any favors by allowing your rents to be seriously below market. You never know when life will give you reasons to sell… death, illness, injury, etc. Your value will be dependent on your income and expenses. Courts in some areas would have a problem with a sudden large increase so playing “catch up” could be difficult. We bought a park with $120 rents when FMR was $200. Under-market rents can make it difficult to pay routine costs and can also bring undesirable tenants.
Of course you can always make concessions at your discretion for those on fixed income.
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Your rents would need to be increased 50% to bring them to market rates. What expenses do you pay?
All I pay is septic, water is billed to tenants
You probably also have taxes, hydro, grass cutting etc.
hello @UPnAWAY . I’m an investor with MHPs in S. Carolina. I may have interest. What metro are you in? (in the event you prefer to private message, please feel free to do so)
-Dave
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Same question as Dave. I’m in Charleston. Where is your park? Hit me up at woodbridgerei@gmail.com or send me a message here. Thanks!
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Sounds cool. Do you have any insurance?