To determine the actual value of a mobile home park we're going to make a few changes to the formula we use for apartment buildings.
To start off - Here's what we use for Class C apartment buildings
Vacancy - 5 % (for leased up stabilized value, use higher number if needed)
Expenses - 45%
Cap Rate - 7%
Here's what to use for mobile home park where you rent just the lots
Vacancy - 10 % (for leased up stabilized value, use higher number if needed)
Expenses - 38%
Cap Rate - 7%
Here's what to use for mobile home park where you own the "boxes" (the mobile homes themselves)
Vacancy - 10 % (for leased up stabilized value, use higher number if needed)
Expenses - 52%
Cap Rate - 7%