Posted by Tony Colella on May 28, 2007 at 12:44:59:
You told us just about everything but what is important… the numbers. The park is a cash flow vehicle and without the numbers no one can begin to tell you how they value it.
10 wides will trigger greater due diligence concerns in regards to your ability to replace them with larger homes. Do the lot sizes prohibit larger homes? Does set backs prohibit larger homes? Well/septic? Grandfathered homes you cannot replace or active mobile home park zoned with the ability to replace homes?
So much to know before one can value a business, least of which is what it looks like (that comes later).
Just wondering if anyone has ever purchased a disgusting mobile home park and turned it around?
The park I looked at had numerous 10 wide trailers and each looked to be occupied with a lot of family members in each. (lots of relatives staying) The park was nasty and no way would I live there! The area, excluding the park, is decent and has a few factories nearby.
It is for sale, haven’t got any numbers though. I was kinda scared away after driving through.
As investors, would any of you pursue something like this?
will the spaces support 14 or 16 wide replacements? Or can spaces be doubled up such that a newer home would fit over two existing spaces? What’s the asking price? What is the space rent, how does that comate with the market? How many spaces (usable for wider units, or doubled up)?
Tons more info needed to evaluate, but this info can help answer your question - would any of us pursue something like this