MHP Valuation - Posted by Eric in FL
Posted by Eric in FL on May 07, 2006 at 14:11:11:
I posted this on the MHP discussion board as well but wanted to get Ray’s and others opinions.
Please take a look at the current numbers on a park I am evaluating and I am looking forward to your thoughts and what you might pay for the park.
Asking: 1.1 Million (69 spaces all paved roads, 21 acres)
Lot rent: $160 per lot (90% occupancy)
2005 Gross $116,000
Maintenance $ 8,000 (this is not correct so let’s say 15k)
Taxes $ 4,000 (this will most likely double)
Insurance $ 3,000
Existing Assumable Financing $425,000 at 6.25% (30 yr amm)
No balloon $2586 month payment
I know that they are dreaming if they think they are getting 1.1 million but I was wondering what the forum is willing to accept as a Cap rate in 2006 and what they expect to get when investing in a park. Thanks for all your responses in advance.
P.S. I will make an offer next week but wanted to get your opinions on the current numbers with no upside calculated in.