I have 3 small parks in Northern NY in a small hamlet close to each other. The lack of housing is a crisis here.
Another park owner, a clean operation, is capitalizing adding new homes and selling them as fast they go in. I have been unable because I have to get rid of a few problem tenants and NY State with ERAP and the eviction moratorium stalled this for 2 years and I have just about worked my way through the process and have 3 evictions pending.
Here is the rundown. Park 1, 3 acres, 18 gravel pads, 11 homes, 8 TOH, 3 POH. Paved roads, town supplied w/s tenants billed by town, Lot rent is $284.32 and will go up 6% May 1st.
Park 2, a mile away, 3 acres, rents are 284.32 and $300 similar but has gravel roads and a sewage lift station which has been working well since new grinder pumps and a duplex panel was added a few years ago. There are 17 lots with 8 occupied.
There is also an old farm house, 100 years old, used to be the owners house, and it a 2 story garage/shop out back. The house is rented for $650 a month to a guy who is working on it and I am trying to develop into a manager.
Park 3, 4 miles from park 2, 41 acres, private water and sewer, individual septic tanks, the perc rate excellent. 24 lots but only 5 occupied, all gravel sets, and some lots have grown over. This park is probably worth more for land than a MHP. I actually like the private water sewer. It is much cheaper, I have few problems. A guy on site operates the chlorine and reports and plows in exchange for rent.
am I looking at a selling price based purely on a cap rate or a price per pad?