Posted by Bill Lakin on March 02, 2001 at 19:30:29:
I have a contract on the following:
4 acres - 37 pads - master water & sewer/city - $385k - owner take back 10% - $170 rent - onsite mgr (free pad +$175/mo) 3 vacanices - generally run down homes - seems to be low turnover - owner shows $48k NOI last year - $44k in '99.
My plan is to do “Lonnie Deals” on any open pads and upgrade ASAP. I believe it will be cash flow positive. I plan to quickly sub-meter the water. The owner pays for individual trash. I plan on using dumpsters and doing many of the ideas in “How to Get Rich…”. There are 26 acres next door primed for development that could take me along.
My questions are:
- Is the price too high?
- Some lots - 1/2- will be limited to 60’. Deal killer?
- Rents will need to go up. There is competition but I hope people will see an improving community and the bad ones will leave and the good ones pitch in. Is this likely?
- The current owner has 3 other parks. Are non-compete’s ever done so he won’t “steal” existing tenants?
I really enjoy this site, the great posts and the books I’ve read to date. Thanks in advance.