Working on a park evaluation - coupla things pop up, and I’m curious how the experienced people address these issues:
Sometimes, a park will include a stick-built, or more than one. How does one evaluate this into the value? I understand that MHs owned by the park could be assigned a wholesale value, and any rental homes’ rent income is disregarded, due to the risk of losing that. But a SFH could have a pretty high value, even wholesale, when compared to a MH. A value so much higher, that it could negatively impact the value of a park. Yet, it would have a lower value than a SFH in a regular neighborhood, 'cuz its in a trailer park. How have experienced people assigned a value, positive or negative, to these houses? (the park I’m evaluating has 3!)
In viewing the rent roll, I see many people behind. I will take their rent out of the income calculation - but how far behind do most people consider a chronic, deductible, problem? At first I’m thinking $1K or more behind, but then I backpedal and figure that if I throw out people more than a month behnd, the seller will take action to correct that. What do y’all do?
Park is on a well for water distribution. Residents can be billed flat rate, because of R&M, but what about metering, and billing more for excess usage above a standard? Also, as a method to determine problems?