Posted by Louis E. Vigil on February 26, 2001 at 24:24:22:
The mobiles are all owned by the sellers. They do not pay any utilities. They are in the process of adding another mobile to the lot. They own a 35 unit and are trying to re-coup their down from purchasing that park.
I have seen their P&L statement faxed to me from their cpa. They have done extensive repairs last year. My property manager went by and took several pics and everyone is in good condition. Three units are on HUD.
6- Unit Mobile Home Park - Posted by Louis E. Vigil
Posted by Louis E. Vigil on February 25, 2001 at 02:04:50:
Does anyone know of a bank that specializes in lending money to buy a 6-unit mobile home park in Texas.
The park is a cash cow:
income: 2040.00
expenses:450.00
Please let me know asap I have a contract currently for
$65,000.00
Louis
Re: 6- Unit Mobile Home Park - Posted by JHyre in Ohio
Posted by JHyre in Ohio on February 25, 2001 at 16:32:24:
I’d DEFINITELY confirm expenses…probably alot of deferred maintenance if expenses have been that low, which means you’ll be shovelling money INTO the property instead of getting cashflow OUT of it. Dave S. is right on target…get utility info, septic or city, well or city, age of all improvemnts (pads, pipes, wires, etc.). Also verify the rent rolls. You may have a cash cow- once due dilligence validates your info. If seller gets cagey, he’s hiding something. Ray Alorn’s course is excellent for a more detailed examination of these issues.
John Hyre
Re: 6- Unit Mobile Home Park - Posted by David S
Posted by David S on February 25, 2001 at 07:08:48:
First of all, I don’t see how any park, even a 6 unit, can operate with 23% expenses… soneone may have “cooked the books” here. Ask to see them along with schedule C.
This good thing is, even with 50% expenses, this seems like a positive learning experience.
What is the lot rent?
Infrastructure: water, who pays? sewer, if septic, how many, how old? power-meter bases up to date?
Are there any “park owned” homes?
I specialize in the smaller parks. Although this is much too small to offer enough cash flow to have onsite management, you can only imagine what free lot rent and a “title” can to for one of the tenants when it comes to collection and basic maintenance.
David S