Welcome to the Mobile Home Park Academy podcast. In this episode, Charles and I will discuss mistake number 6 from our popular eBook, “The 21 Biggest Mistakes Investors Make When purchasing their First Mobile Home Park…and how to avoid them.” This episode will cover why you need to adjust your property taxes when running your proforma. This is an area that gets overlooked by investors from time to time. It is also a miscalculation that can completely wipe out your return in the right circumstances.
Most counties assess the property taxes by using comparable sales. This is very difficult in the park industry, because most counties haven’t seen a park sell in years. The assessed value on many parks is well below where they should be.