Posted by Michael(KCMO) on May 02, 2006 at 19:51:39:
I’m always willing to listen - especially if you’re in my vicinity (Kansas City or w/in 4 hours thereof).
Michael Stilfield
816-665-5408
Another park - Posted by Kay
Posted by Kay on May 01, 2006 at 18:39:11:
Found another park. Looks better than the last one. 30 units on 5 acres with room for exapnsion of 15 for a total of 45. Right now the old man is GIVING away park owned units as long as they are removed from the park. Current tenants, there are 5, must be gone my May the 20th. Wants an offer. Clean five acres. Individual water, electric and gas meters and on city sewer. Paved roads. 10 minutes to the lake. Hmmm… Well let’s see what this stirs up. I am thinking about 125,000. What do you think. The park does have highway frontage although it is not a busy highway. It is highway none the less.
How about some input. Thanks
Re: Another park - Posted by Eddie-Mi
Posted by Eddie-Mi on May 01, 2006 at 20:01:10:
125,000 for 30 lots with expansion? Sounds like a no brainer to me. One of the big things I would look at is the size of the lots and the condition/age/size of the homes. At a minimum, you would like to have 14 wides with peaked roofs. The CURRENT cashflow is what you base your price on- the upside is your profit not the current owners.
A red flag though- anyone GIVING away units means they have a negative value (usually a junker). He doesn’t want to pay to dispose of them.
Re: Another park - Posted by Kay
Posted by Kay on May 01, 2006 at 22:25:17:
Well it is like this. The guy is 82 years old and doesn’t want to mess with the park anymore. That is why he is clearing them out. He has 3 that he has to attain a title to. Only 5 tenants left in the park. They are currently paying 70 per month for lot rent. Lot rent should be at least 125 in this area. The rest of the park is empty. So there you go.
Why is the park empty? - Posted by Jered (WA)
Posted by Jered (WA) on May 02, 2006 at 24:53:04:
I am still new to much of this “deal” seems full of red flags to me.
Why are there only 5 tenants in a 30 unit park? What is wrong? How will you change it? What is your competition? How much capital will it take?
At the end of the day, this is an investment property which requires tenants in order to generate profit (cash flow). If there aren’t any tenants (or tenants who want to live there), you aren’t going to make a profit.
Jered
Re: Why is the park empty? - Posted by Kay
Posted by Kay on May 02, 2006 at 04:54:20:
The reason the park is empty is because the guy is 82 years old. He is tired and doesn’t want the headache anymore. He built the park 10 years ago. There are still tenants there and there are some park owned homes there. He is, or was, giving away the park owned units because he does not want to go through the hassle of moving them. His lot rents are too low for the area. The nearest park charges 100/month and he is at 70. The park could easily bring 125. Clean flat and level with paved roads. 15 minutes to the nearest wal-mart. 10 minutes to the lake. I do see the potential just nervous about offering him 125,000. The park was full at one time, I do remember that. The nearest city has a population of about 50000 people. The other two communites that are close have populations that range from 6000 to 15000. The reason I posted was to get feedback and pointers. I really do appreciate the responses I am getting. Thank you.
Re: Why is the park empty? - Posted by Eddie-Mi
Posted by Eddie-Mi on May 02, 2006 at 11:03:23:
It really doesn’t make much difference if current lot rents are 70 or 125. Why? Because theres only 4 units paying rent.
Unless you are experienced in buying wholesale units and transporting (and have the capital to do it)- I would stay away even at price of 125,000. You are buying negative cashflow. Vacant pads do have value- but nowhere near as much as a paying tenant.
Re: Why is the park empty? - Posted by Michael(KCMO)
Posted by Michael(KCMO) on May 02, 2006 at 08:38:28:
Where’s it at? Maybe I’ll buy it! 
Re: Empty Pads - Posted by Sailor
Posted by Sailor on May 02, 2006 at 17:42:40:
Yes, but I’d rather have empty pads & get to pick good new tenants instead of inheriting lousy ones.
Tye (speaking from a bit of experience)
Re: Why is the park empty? - Posted by Kay
Posted by Kay on May 02, 2006 at 10:51:17:
Well how about a partnership?