Posted by ray@lcorn on April 24, 2006 at 19:51:19:
Just want to let folks know I answered this post over on the commercial forum…
http://www.creonline.com/commercial-real-estate/wwwboard5/messages/19827.html
ray
Need help determining value of MH park . - Posted by Trailermonkey
Posted by Trailermonkey on April 22, 2006 at 14:21:11:
I have found a MH park owner who is willing to sell, but I feel the price is too high. The park is located in a small Texas town, but there is growth all around. It is not located on what I would consider commercial property, it has no major highway frontage. The park has 16 spaces, of which all are rented. Their are 7 park owned homes. All homes in the park are real dogs. The park has no ammenities, and consists of just one gravel road that cul-de-sacs with homes around the perimeter. With a little rehab, the place could be nice. It appears to have just been neglected. My intension would be to remove all homes from the park, and replace with very nice 2000 model 16x76 singlewides. I would offer current residents the option to lease/purchase these units, or owner financing.The current rent per lot is $200per space, and I feel it could bring $250-300 per space by giving the park a facelift, and offering easy financing. I keep hearing about cap rates etc., but where would you guys value this park, and what would you offer? I truly appreciate your guidance in this area. I have been in the retail end of the MH business for 25 years, but this is the 1st park I have looked at buying. The two things I do know is that I will be able to fill all of these homes/ lots relatively quickly (6months). I feel feel for certain that I should be able to get about $550.00 per lot and home. What do you guys think? Thanks.
Ray Alcorn is the guru in this field nt - Posted by John Merchant
Posted by John Merchant on April 25, 2006 at 08:45:07:
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