Posted by Dave b on May 14, 2005 at 12:21:39:
Thanks for the tips I’ll give it a go!
How do you figure out market value of MH’s ? - Posted by Dave b
Posted by Dave b on May 12, 2005 at 22:47:00:
Hi,
I’m a newbie to MH’s, I’ve bought a few SF homes and am renting them out but would like to get something with a bit more cash flow.
Why is knowing market value important id we just want to by fixers and flip?
your question seems . . . odd - Posted by Steve-WA
Posted by Steve-WA on May 13, 2005 at 09:58:35:
Why is knowing market value important id we just want to by fixers and flip?
uh, so you know what to sell it for? BYW, the market is different than SFH . . . SFH can get bank financed, but usually not the MH - so seller financing allows a little higher price and/or terms. But how high is too high? or too low?
Dave b, buy DOW.
and one other thing - Posted by swwa
Posted by swwa on May 13, 2005 at 10:01:18:
I click buttons too fast . . .
for the same MH, Karl (OH) can sell it for 7.5K, Michael(KCMO) sells for 8.5K, I sell for 11.5K, and somebody in SoCal sells it for 50K. So it’s imoportant to know your market - many tie in to apartment rents - so you know where your sell range should be.
Re: and one other thing - Posted by Dave b
Posted by Dave b on May 13, 2005 at 10:16:58:
OK so I’m dumb, Now could someone answer the question I asked in the post… “What is the Best way to figure out market value?”
Thanks in Advance
Db
Close to Will’s answer - Posted by Jody (IL)
Posted by Jody (IL) on May 14, 2005 at 10:54:53:
Here’s what I did when I was trying to figure this out. I put an ad in the paper as follows-
12 x 60 2 br - will finance - $6000
I figured mkt value based on responses. $70 for a month, and I had about 50 people on my list of potential buyers. I figured 50 people would be what I hope for for a 12 x 60, so that’s where I’m pegging most of those, and I upped it for 14 x 70’s. No science, but it gets me there.
Jody
oh geez - Posted by Steve-WA
Posted by Steve-WA on May 13, 2005 at 11:20:32:
not my point Dave.
ARe you talking about market for MH in park? On land?
comps, like anything else. What people will pay - and have been paying - is your market. You have to figure that number out.
For a MH in a park, follow will’s advice.
concurrently, figure out what comp apartments are renting for. If a 2/1 apartment rents for, say, 500, then work backwards to get approximately the same number for yor buyer:
what is lot rent? 250? then you can successfully expect a $250 note payment. What is a reasonable length of time for payoff? many here say 3-4 years, so figure that at the industry standard for interest rate, and you’ll have your PV - this is, of course, AFTER the avg 10-15% downpayment has been applied.
All of these numbers are fudgeable, but its a good place to start. Bounce your answer against what the comps are, and you’re there.
For L/H, realtor-supplied comps should get you there.
Good luck
Re: and one other thing - Posted by will(WA)
Posted by will(WA) on May 13, 2005 at 11:13:07:
Disclaimer: This is what helped me out when I first got started. Of course you may need to adjust for your time and etc.
Get a little nickle, thrifty nickel newspaper or something like it. Read all the ads for the MH’s in it. Call on the ones that say Seller Financing, then go visit all of them to see what they are selling for that price. Once you see all the MH’s for sale in your area place a test ad.
Put the test add in the same newspaper you just read for a MH at the price range you think will sell in your local area. How many calls do you get?
Then go see a few park managers, cruise the parks and talk to people that are selling thier MH’s. Become friends with the Managers at the parks you like. Once you are on friendly terms see if they will tell you what homes have sold in thier park and how much they sold for.
If you do all that you will then be just begining to understand the local market.
Sorry there’s not a 5 minute fix to your question, it just plainly takes some time. Think of it as doing due diligence for your investment, you wouldn’t run out and spend money on just any house and expect it to cash flow when you rent it, would you?