Posted by Michael Chandler on September 17, 2009 at 21:59:07:
This is a commercial property,value is based on current not potential revenue.4 to 5 times grm on current estimate of $80,000 gross rent.Would put estimated value between $320,000-$400,000.If they raise the rents to the maximum of $385.00 per month and fill the park.I feel the value of the park could rise to between $960,000.00 and $1,200,000.00.Value is perceived by what we see.
Valueing MHP ? - Posted by roundhouse
Posted by roundhouse on September 16, 2009 at 10:41:51:
Looking to get an idea of the value of an MHP.
55+ park in Florida.
5 acres, 52 lots, muni water & sewer.
3 empty lots, 3 tenants that are several months behind in lot rent.
Owner says expenses(taxes,permits, ins, water, trash) total $64K
Lot rent is $135, comparable lot rent is $350-385
( sounded odd, but I verified & called and checked other nearby parks)
All MH’s tennant owned, no park owned homes. Most trailers are very old, park built in early '70’s I think.
How do I calculate A: Whats its worth currently?
B: what it will be worth after the lot rent is raised to market?
C: What would be a fair starting price to offer?
Owner will not take back any paper wants a quick all cash sale.
Re: Valueing MHP ? - Posted by Michael Chandler
Posted by Michael Chandler on September 16, 2009 at 20:11:15:
I feel a good offer would be between $300,000.00-$350,000.00.It pays to be a problem solver.
Re: Valueing MHP ? - Posted by roundhouse
Posted by roundhouse on September 17, 2009 at 11:31:50:
They’ve already turned down $470,000.
Im trying to help em sell it. MHP belongs to a semi distant relative, Id be interested in it, but its too far away.
I suggested that $650K would be top dollar in its current condition and $400-500K was more likely.
Also told them if they jacked the rent to market value and managed to keep it close to full occupancy, they;d have no trouble getting $800-900K