So I’m in negotiation on my first park and the listing agent is being persistant that I “value” the empty lots in the park. “You expect to get those 10 vacant lots for free,” he says. I loved reading that.
Asking price: $200K
Total lots: 20
Vacancies: 10
Lot Rent: $200 (Market rents around $215)
No POHs
Park pays for water only
Expense figures are attached.
At a 10 cap it is just under $115K.
I shot for a 12 cap just to see where it would get me so I offered just under $89K.
Yes, yes, it has one big negative, it is near a train track, so I deducted $20K.
After a little back and forth, this agent is stuck on me not considering the 10 vacant lots. Perhaps I should give them a monthly value of $50 each. I love the location, it’s in the best school district in the state. Due to my many calls to the town zoning administrator, we have hit it off a little having a few things in common and he’s told me a lot about the property, both good and bad.
Once I have it under contract I will get a survey with the mobile homes included. Looking at past surveys, 6-8 homes MAY be over the property line. They certainly appear to be not within the proper setbacks, though I can’t definitively say without the survey. If either situation proves in the survey, I’m out.
Anyway, I’m rambling, but yes I may have offered a bit on the low side, but I don’t want to value those empty spaces. I mean, they don’t have value, do they?