David-S, Dirk, and other MH Guys - Posted by Robert(AL)

Real Estate Investing
1

Posted by Dirk Roach on May 02, 1999 at 01:14:10:

I would want to know ALL the expenses! Also I would want to see the rent rolls and I would want to verify that, sometimes what’s on paper can vary with what is reality.
Also what “problems” does the park have? A trip down to the sheriff’s office can be very eye opening.
What’s up with the financing? How much down etc?
As in any venture the more info you have the better equiped you are to make a successful decision. Also it can put some nice cards in your hand for negotiating.
Dirk

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David-S, Dirk, and other MH Guys - Posted by Robert(AL)

Posted by Robert(AL) on May 01, 1999 at 18:31:03:

I met with the park owner today of the 5 unit rental park. I didn’t get all the info I wanted just yet but I have more to go on now than I did in my last post.

Deminsions of property are-
East line(road frontage)412’
North line 390’
West line 338’
South line 398’

Property is broken into 5 lots each with one rental mh-

Lot 1 monthly rent (lot + mh) $260
lot deminsions - n- 390’, e-104’, s-458’, w-60’

Lot 2 monthly rent (lot + mh) $260
lot deminsions - n- 458’, e-73’, s-455’, w-58’

Lot 3 monthly rent (lot + mh) $180
lot deminsions - n-455’, e-70’, s-455’, w-70’

Lot 4 monthly rent (lot + mh) $260
lot deminsions - n-455’, e-70’, s-438’, w-70’

Lot 5 monthly rent (lot + mh) $260
lot deminsions - n-438’, e-95’, s-398’, w-80’

Total monthly income before expenses $1220.00
Asking price $85,000 seller said he would finance

Only about the front 100’ of each lot is cleared for use, there seems to be opportunity here to develop the additional property to generate more income producing lots. All the mh’s are currently rented and they are the older “Lonnie Deal” type. As I mentioned in my previous post, if I purchased the park, I would want to sell the mh’s via a “Lonnie Deal” so as not to have to deal with tenant hassles. We have not begun any negotiating on purchase price and I have not seen his Schedule E to verify income and expense. After selling the mh’s the lots should rent for about $125 or so each.

I would appreciate any input or ideas any of you may have.

Thanks,
Robert(AL)

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Re: David-S, Dirk, and other MH Guys - Posted by Nancy Cason

Posted by Nancy Cason on May 02, 1999 at 08:22:58:

If you have city sewer see, if you can tie in. If your are on septic system check with the health department and get an existing system check.

Also check mobile home park regulations for your state and county. If may be difficult to expand.

HAVE FUN AND KEEP A POSITIVE MENTAL ATTITUDE

Nancy

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Re: David-S, Dirk, and other MH Guys - Posted by David S

Posted by David S on May 01, 1999 at 21:03:10:

first, you need to separate the value of the dirt and mh’s.
Place value on the dirt based on avg market site rent in a similar park; perhaps 100 per month.

Place value on each mh based on size, age, condition, etc.

you need to know the expenses, all expenses, so you can get to the NOI.

If you have the additional info, post it here.

David S

5

Also when you expand… - Posted by Dirk Roach

Posted by Dirk Roach on May 02, 1999 at 08:46:17:

and have your new mobiles put in (if the potential is even there), and the county inspector comes in to give you the okay. Sometimes it is a very hard temptaion for them (inspectors) not to notice all the BS and shortcuts on the existing mobile homes. In the park which you just begged, barrowed and stole to buy. Not the time for a ton of additional fines and upgrades.
If it were me I would do upgrades in stages following a strategy and plan which I had worked out way back when I was considering purchasing the park.
Just some thoughts,
Dirk