Real Estate Appraisal Forum

appraisersforum.com logo
The Premiere Online Community for Real Estate Appraisers!
 Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
 
 
Go Back   Appraisers Forum > Real Estate Appraisal Forums > Commercial/Industrial Appraisals
Register Help Our Rules Calendar Archives Mark Forums Read


Closed Thread
 
Thread Tools
  #1  
Old 10-14-2011, 09:30 AM
Terrel L. Shields's Avatar
Terrel L. Shields Terrel L. Shields is offline
 
Join Date: May 2002
Location: Springtown, AmeRica
State: Arkansas
Professional Status: Certified General Appraiser
Posts: 38,856
Default Mob Home Park Cap Rates

Appraising a MH park with 12 spaces... 5 are leased, and typically no more than 6 or 7 have ever been occupied at once. Out of the city limits.

In the Income Approach, I am trying to take into consideration the abnormally high vacancy rate at the same time, trying to rationalize how to arrive at a cap rate when the last MH Park that I found sold that wasn't sold by a bank or by a bankruptcy trustee was sold to convert to a bank building...in other words, would you eschew the direct capitalization and attempt a sort of generic yield capitalization method???

I would lean to a simple GIM but again...I gotta go back 5 years to find a sale with useful data.
__________________
"What does not kill you, makes you stronger, except bears. Bears will eat you"
Sponsored Links

  #2  
Old 10-26-2011, 09:56 PM
kristin0731 kristin0731 is offline
 
Join Date: Jan 2009
Location: Orlando, FL
State: Florida
Professional Status: Certified General Appraiser
Posts: 63
Default

http://dl.dropbox.com/u/21548730/Mob...ap%20rates.png

Here is a link to some general cap data for mobile home parks in Florida. I recently appraised a very small and old mobile home park. It didn't have high vacancy but had very old mobile homes resulting in a very high reserve for replacement.

If the vacancy is high, perhaps the mobile home park is just an interim use. Though it may not be the actual HBU of the land, there probably isn't a lot of demand for redevelopment - especially for a property that actually is producing some income. You may want to consider estimating an interim value to add to the value of the underlying land. You can do this utilizing a simple DCF based on the actual rental rates and vacancy. However, similar to the cap rate....what is the holding period? Could be 3, 5 or even 10 years...

good luck!
__________________
If it doesn't make sense...rebel and find out why!!!!
  #3  
Old 10-27-2011, 02:52 PM
Terrel L. Shields's Avatar
Terrel L. Shields Terrel L. Shields is offline
 
Join Date: May 2002
Location: Springtown, AmeRica
State: Arkansas
Professional Status: Certified General Appraiser
Posts: 38,856
Default

Good reply - yes, I did use a published source and gave little weight to the income approach. It was a simple land tract but is "off the beaten path" and unlikely to convert to anything else for a while..but certainly was a "judgment call" it seems.
__________________
"What does not kill you, makes you stronger, except bears. Bears will eat you"
Sponsored Links

Closed Thread


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump




Copyright © 2000-, AppraisersForum.com, All Rights Reserved
     Terms of Use  Privacy Policy
AppraisersForum.com is proudly hosted by the folks at AppraiserSites.com

Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
Partner Sites:
AppraiserUSA.com - National Appraiser Directory AllDomainsUSA.com - Domain Name Registration
DeadbeatListings.com - Deadbeat ListingsAppraiserSites.com - Web Hosting for the Professional Real Estate Appraiser
Find FHA Appraisers - FHA Appraiser Search Commercial Appraisers - Commercial Appraiser Search
Relocation Appraisal - Find Relocation Appraisers Domain Reseller - Business Opportunity
Home Security Buzz - Home Security Info Radon Testing - Radon Gas Info
My Medicare Forum - Medicare Info Stop Smoking Help - Help Quitting Smoking
CordlessPhoneStore.com - Great Cordless Phones AndroidTabletCity.com - Android Tablet Computers

Follow AppraisersForum.com:          Find us on Facebook            Follow us on Twitter


All times are GMT -5. The time now is 09:46 AM.

SiteMap: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93