Value of Mobile Home Park

I am putting together a group of investors to joint venture with me and purchase a mobile home park in Georgia. I am in the process of conducting due diligence and am trying to ascertain what you think the value of the property should be based upon a “standard industry” percentage being allocated to expenses and reserves. The following is the criteria of the park:

201 spaces;

public water and sewer individually metered;

120 park owned homes (all in reasonably good condition) of those 77 park owned homes rented & 43 park owned homes vacant;

37 lot rentals occupied (resident rents lot and owns home); and

44 lots vacant

Monthly income currently being generated : $34,904.00 x 12 = $418,848

Whoa. Before you buy any MHP, you need to come to Bootcamp. You’ll learn all about valuation there.

A property with that many POHs might ‘only’ be worth 3x or 4x sales.

That said, what is the lot rent for this property? What is the age and condition of those mobile homes?