Ok, so I’m new to the MHP game but I have studied up quite a bit and need help with a valuation. So here are the facts:
Location: 24 Space semi-rural Texas area but w/ population of 1 million plus in surrounding small cities. Park has paved roads & pad sites with city utilities.
POH: 9 SW POH in good condition model yrs 1990s. Average rents $565
TOH: 1 TOH. Rents for $250
Sounds like a good area and good starter park providing demand checks out and you have the ability to fill it up.
10 x 250 x 12 x .50 expense / 12 cap is 125k or 150k at a 10 cap plus whatever you value the homes at. If they don’t need any work they are gravy money. Realistically you will only get it for under 150 if the area is bad, or any number of other circumstances are in your favor.
If I thought the area was strong, park rents could go up, and I had a plan to bring in homes I would consider going higher, but carefully.
If he has an asking price of 300k already then it’s too high as a park.
That’s a start anyways.
Need more info really
I would personally do $120K no more. I just closed on a 95 lot park with city utilities, 64 paying residents - 60 of which own their homes - 5 empty homes. Extremely strong market in a fantastic area - at a 14% cap on actuals. Rents north of $300 / mth per lot + water/sewer - and rising.
For 10 lots in rural texas - 15-20 cap.
To be clear - if you were telling me you’re in/near DFW or Austin that’s a different story.