So for the land, 21 lots * 250 * 12 = $63,000 in revenue. As it’s a small park, I’ll assume a 40% expense ratio.
NOI = $63,000 * 60% = 37,800
The lot value, as is, if all these home were TOH, would be $540,000 at a 7% cap rate and $472,500 at an 8% cap rate. As I don’t know where your park is, or much more else about it, let’s say the value, assuming all TOH is $500,000.
Now, we need to renovate, fix, and sell, 9 POH. I don’t know the condition of the homes, so let’s assume $4,000 per home. (Probably high, in not sure anyone would put $4,000 into a 1970s home - it will depend on what you can sell the off for once it’s fixed up). I’m also going to assume I don’t need to renovate the occupied POH and we can just sell those off. Total renovation cost: 9*$4,000 = 36,000.
Lot value would be $500,000-$36,000=$464,000. I may chop 10%-20% off this value so that once I do renovate and sell the home off, I have more room for error and some economic profit.
I would also need info on what I could rent and renovate the SFRs for.
My value of $464,000 could be high, it could be low. I’m not sure if anyone would really want to put $4,000 cash into 1970s homes. You may never get the cash back out when you sell it. As selling the POH probably be a low sale price, you may need to give the home away or take a loss just to sell it off.
Would love to hear how everyone else on here would look at this park.