Differences Between Buying A Rv Park Versus An RV Park
Like most industry the Seller usually wants too much and the purchaser wants to pay too little with a mobile home playground. Certain buyers may have different motivations for the purchase of a certain park (1031 money, ability to obtain better financing, conversions to other uses, and location to where they live). In this book we will only look only at the value of a mobile home park for the typical buyer who continues to operate because a mobile home park.
Anyone that has seen an appraisal on a house or most varieties of real estate will have heard mention within the 3 approaches to determining the associated with that real personal. They are the Cost, Sales, and Income Get near.
Unless you are coming up light and portable value of a brand new mobile home park or one that is predominately vacant, I do avoid seeing any reason to utilize the cost come up on. It is not likely how the new mobile home park will be built nearby the it would cost to build an alternative park does truly take into account the amount of time, effort, and cash it takes to fill that park up with occupied and paying passengers.
As far given that Sales or Market Comparison approach to value, this is also highly suspect. This is based on comparing the sale of this subject property with the other recent sales and adjusting for differences that you may or may not know exactly about. Problems with this approach include varying expenses, rents, and management. An ideal an investor or appraiser I would certainly use this approach as potential information and not draw any conclusions from it.
Lago Vista RV Park
2871 Hwy 72 W, Three Rivers, TX 78071
(361) 436-0845
