MHP Valuation - Posted by Andy Doane

Posted by Chuck (AZ) on March 04, 2002 at 11:44:53:

An empty space is basically worth the cost of it’s construction… which could be as little as $5k or as much as $25k… and is dependent upon a number of factors relating to the local marketplace.

When in doubt or supplied with little to no info (as I am here), I’d go light.

MHP Valuation - Posted by Andy Doane

Posted by Andy Doane on March 04, 2002 at 02:52:03:

Could someone please advise me on how to put value on an empty space in a new MHP development when trying to determine a fair price for the MHP?

Example: 80 space MHP, 40 rented 40 vacant

I understand that you don’t put much value on potential income from an empty space in an older park, but is there greater value for the empty space in a new development?


Re: MHP Valuation - Posted by Jacque - WA

Posted by Jacque - WA on March 04, 2002 at 11:53:56:

Hi Andy,

You have to evaluate this in individual elements ? then put it all together for an overall value.

The spaces have no value other than raw land value ? ?cheap, cheap, cheap.? Your main cash flow and which you would obtain your most value is from the spaces receiving rent.

First you value the cash flow from the spaces obtaining rents (you can get this off the rent roll). Park owned homes are considered a liability. Count only the income from the park spaces. Deduct the actual operating expenses and don?t forget insurance, utilities (major expense), maintenance, capital expenditures, etc. Capitalize those figures into your own return you wish to receive, the risk of the park, and a value for your efforts. Then pull all of your numbers together and see what your coming up with for numbers.

After that you would need to see the actual certified income and expenses for the deal before actually structuring an offer.

Good luck,

Jacque - WA