help valuing park. 38 total spaces, 36 @ 155.00m, 2 owned homes @ 550.00m, 1 (sfh) 600.00m 32 (10x10) storage @ 50.00m all 100% full thanks for your help
38 x $155 x 12 x .6(assuming park pays water & sewer) x 10 = $424,080 for the mobile home park lots plus 32 x 50 x .8(need vacancy factor) x 12 x .7 x 10 = $107,520 for the self-storage units. Not enough data on the homes to say, but let’s assume $5,000 per home = $10,000.Total value is around $541.600, based on the data presented.
Interesting. I looked at a park with a similarly large storage component that scared the bejeezus out of me. 90% full but apparently 80% of the units are rented by park tenants. Rents were 50+ under market but I was thinking if you jacked them people would simply abandon their storage units for a wash. In this case I would think the SFH would be worth an additional 40-50k or so no?
tenants pay water and sewer. thanks for you advice.
Sorry, was moving fast before going to Thanksgiving brunch. The SFH would be worth maybe $40K extra, but depends on the condition. Some of these SFH inside parks are complete junkers that require more to bring them up to code than they are worth. I donated a SFH to the fire department in east Texas so they could burn it to the ground and practice firefighting, as long as they then carted off the debris – that’s how much a 2/1 frame house can sometimes be worth.
Right, I’m assuming it’s serviceable. Expense at 60% cap at 10 since its in a park, using the income approach you’re at +/-40K. Ha, I really like adding these out of the box type fixes to my possible solutions portfolio. Most people simply would foot the bill for something like that. I mean I’m sure 9/10 times you do but it’s a good reminder that before whipping out a checkbook you stand to gain if you spend some time considering different angles.