Need MHP Eperienced Opinion - Posted by DaleC

Posted by Rick Lee on January 09, 2008 at 06:08:39:

Good points Ryan,

Additionally, it is important to know how big the lots are, if they will accept large modern homes, if not the value is severely limited by the size & condition of the obsolete units.

10 units per acre is about max density, so you may be ok.

Also is the electric service up to codes for modern homes? Most likely not, they need to be 200 amp service. If not that will be a major project, and a fairly expensive one.

Lastly, you need permission, in writing, from the local governing body, that you can replace the units.
Many old parks are “grandfathered in” and will be allowed to remain as is, but not be upgraded.
They will also want the electric service to be brought up to code, which may be possible one at a time w/overhead service, but w/underground you will need to do it all, most likely.



Need MHP Eperienced Opinion - Posted by DaleC

Posted by DaleC on January 07, 2008 at 22:52:04:

Iâ??m looking for an opinion of a ‘FAIR’ sale number for the MHP below from someone experienced in MHP values.

I live 1200 miles from the park and a relative has been taking care of it. However, due to cancer, we will have to sell it in 2008. I don’t have the resources to keep it or improve it and need to find out what is ‘retail value’ and ‘wholesale value’ for this type MHP.

I called local realtors and they didn’t know how to value a MHP.
I contacted a MHP sales company on the internet and they just want the fee for displaying an ad for a year after I determine the price.
I could not locate an appraiser in that area and thought this site was the best for an experienced opinion.

The Park & MH’s
It is an older 15 space MHP on 1 1/2 acres in a small city in Southwest Missouri. Park spaces are on city sewer, water and gas. Tenants pay for utilities directly.
There are 3 empty spaces.
There are 2 non-rentable trailers, 1 is used for storage and 1 in need of removal due to aluminum wire.
There are 2 rented spaces @ $125mth each.
There is 1 managerâ??s space.
There are 7 park owned MH rentals. All homes are in the 70’s and probably in need of work with minimum value other than rental income. Rents range from $280 to $350 mth.
There is also 1 RV lot for temporary rental of RV’s not for mobile home usage and not counted as part of the 15 spaces.

$18,134 Income
$7283 Expenses (No Mgmt + No Debt Svc)

2001 thru 2005 Averages
$20,920 Income
$7707 Expenses (No Mgmt + No Debt Svc)

I hope this is enough information to form an opinion on. If not, please advise.
I appreciate your time and assistance and anything you have to say about this one.
Thank You!

Re: Need MHP Eperienced Opinion - Posted by Ruben (KCKS)

Posted by Ruben (KCKS) on January 09, 2008 at 06:29:31:


I sent you an E-mail regarding your park. If you do not receive it please contact me by E-mail or call me at 816 918-9041.


Re: Need MHP Eperienced Opinion - Posted by Alan

Posted by Alan on January 09, 2008 at 04:22:55:


I have a few questions. Please contact me at Thanks!

Re: Need MHP Eperienced Opinion - Posted by land-o

Posted by land-o on January 08, 2008 at 22:38:42:

Man I sure wish I could find a park like that around here!

I bought a little park (13 spaces) like that with the same numbers about ten years ago for 100K, filled the empty spaces, bought the tennant owned trailers, and now it is a nice little income producer. (58K)

you will have to carry a paper with 25 % down,

if you get a good customer, you might set the interest low the first few years to get a higher price

you simply do not have much income there to work with.

but the projection of 15 nice 14 foot single wides in there renting for 500 each would sure be nice!

You have a property that fixed up could produce 90k a year!

anyhow right now it will pay a $900 mortgage, If you sell it for 100K, with $25K down, and a mortgage for interest only for 2 years, the payment would only be 415 or so (at 6%), then have the contract bump in 2 years to 9% and fully amortized over 15 years.

something like that would work

So you are selling opportunity, but you have to make it cash flow!

Re: Need MHP Eperienced Opinion - Posted by Ryan (NC)

Posted by Ryan (NC) on January 08, 2008 at 08:33:49:

on a quick analyst of the park without putting much thought in to it, I’d personally value the property at somewhere between roughly 65k-100k maybe less if this is a war zone type of property, if there are infrastructure problems, or if there are major people problems… From your description the homes need nearly as much in work as they are worth so the only thing of value would be the land.

Solid financial and written month-to-month leases help solidify value, if you don’t have these in place that would be the first thing I’d start then any trash issues should be addressed to get the most value.

If you are looking for a fairly quick sale I’d contact Michael (KCMO) or Ruben (KCMO) from this board and see if they or someone else they know would be interested.

Best wishes,
Ryan Needler