Information on the park I am considering:
50 sites, all MHs owned by park.
Monthly rental income $27,400. This works out to approx $550/m per unit
I was told that the space rental alone would be $350/m. Therefore each mobile home on avg rents for $200/m, on top of the $350/m lot rent.
The average build year of the MHs is about 1965-1970. The vast majority were build before 1980.
The owner lists a total “estimated home price” of $322,000 or approx $6,400 per unit.
The tenants pay electric and gas (individually metered). The tenants also pay water, but there are no individual water meters so I will need to look into exactly what that means regarding the water.
The asking price is $2.3 million, which makes the price per space approx $46k. Based on my research on this website it is richly priced at this time.
My concern is that, the MHs being as old as they are are not really worth what the owner is asking. Even taking that in account, the MHP still seems too high in price.
I would like opinions as to what a fair asking price for a MHP such as this might be.
Based on my review of this helpful website, park owned MHs may not be the way to go for most of us. How difficult would it be to convert this MHP to a “lease to own” park?
If you need more info, please let me know and thank you very much in advance