How do appraisers view park owned home payments?

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1

Hey everyone, just curious as to how most appraisers may look at the income from a park owned unit (not the lot rent) when coming to their valuations.

Any help is much appreciated.

2

If done correctly the income should be allocated between the site and the home. For example, if the total income is $1,000 per month and market rent for the site is $400, then $600 of income is allocated to the home. Income and expenses should be analyzed separately for both. FYI I’ve been appraising for almost 20 years.

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3

Thanks Erik, is that to say that you would apple a cap rate the total income between the site and the unit? Separately that is.