Ok, another potential MHP deal here in my area.
Asking: $300k (ridiculous for the numbers as you’ll see).
4.5 acres (2 acres empty raw land zoned R1-residential). 2.5 acres of park is zoned as a MHD-Mobile Home District, which here means you can move trailers in and out.
12 lots x $170 LR = $2040. All have trailers, 8 owned by Park Owner.
3 MH’s vacant right now. 1 MH owner-occupied.
8 x 170 = $1360. 2% rule would be $68k for park. Dave Reynolds/Frank Wolfe’s calculation would be $1360 x 60 = $81,600. This is basically a 10% cap rate.
Trailers rent from $150-350/month.
The 2 acres that sits behind the park is a tough part of this. The owner tried to re-zone it to MHD like the front part, which would be great, but lots of push-back from surrounding neighbors and city would then require paved streets, water-hydrants, etc. So, to me it basically has Nil value in the purchase except for maybe what rural land goes for which is about $2k/acre, so $4,000 maybe. It could be potential land to use for some added amenities to the MHP, but I don’t know what those might be yet.
Any thoughts? Need more info?