How do I figure value for MH Park - Posted by Dennis KS

Real Estate Investing
#1

Posted by Dirk Roach on October 27, 1998 at 16:50:08:

It seems to me, the only good thing about the nada book is getting your insurance. Because it always apraises higher than is the reality. I recently looked at a Mh which the owner was asking 3.5k. The home could be sold realisticlly for around 10.5/11k. That home in the ‘blue book’ was valued at 17.5k. There is no way that home would go for that in that part of town, that park etc. The book simply doesn’t take in enough factors to represent the market. I also agree with Lonnie Scruggs in that using the book you will overpay when you buy and be misled in an accurate selling price when you sell.
What are simuliar MH’s going for in surrounding parks? What have other parks sold for? And when?

#2

How do I figure value for MH Park - Posted by Dennis KS

Posted by Dennis KS on October 27, 1998 at 11:30:44:

I found a Mobile Home Park for sale. Has 31 spaces, all are full, at $80 per month, plus a 5-plex that grosses $1100 per month (however utilities of $450 per month paid by landlord)
Other expenses are $150 per month for trash pickup, $50 for insurance, and $100 for taxes. However I would also have debt servicing on top of that. I have good credit but, am in debt to my limit. Looking for a way to do this if it makes sense. Asking price is $175,000. Thanks in advance!

#3

Re: How do I figure value for MH Park - Posted by J.P. Vaughan

Posted by J.P. Vaughan on October 27, 1998 at 16:15:08:

A mobile home park is valued like any other commercial
property. Go to our “Money-Ideas” page and read “A
Crash Course in Commercial Real Estate” by Jim Beavens.

JPV

#4

Re: How do I figure value for MH Park - Posted by Rick from Ohio

Posted by Rick from Ohio on October 27, 1998 at 12:42:50:

I was looking into buying a small park myself, and since it was out of state, I called a realtor to find out how much an appraisal would be. In the process, an appraisor told me that you must evaluate the property separate from the homes. If you don’t know property values, this one will be hard. To find out how much the homes are worth, they use a booklet like the NADA “blue book”. I don’t know what it’s called or how to find one. ( If you find out let me know!) They consider location, how much the property is developed (wells, septics, roads, etc.) and put it all together to get a price. In SC, the appraisal would cost me $1000.00. I personally would rather pay the $1K upfront so I would know I was getting a good price.

Hope this helps,
Rick from Ohio

#5

Re: How do I figure value for MH Park - Posted by John (KS)

Posted by John (KS) on October 27, 1998 at 12:01:27:

Where in KS are you?

#6

Re: How do I figure value for MH Park - Posted by paul(OK)

Posted by paul(OK) on October 27, 1998 at 14:41:41:

www.nada.com around $100