Found: Non-Performing MHP (Long) - Posted by Paul of NYC

import · September 22, 2006, 10:57pm

Posted by Bill Russell on September 23, 2006 at 04:57:52:

Paul, cheers back. One needs to be in their cup to ask the questions you did, expecting someone to type all the answers out when they are already within the archives of this forum. grin
.
Educate yourself where you know the answers to the questions you asked before you buy. Chris is right. Buy some books. They all say the same thing, buy low, sell high, finance if you can. You must know the net income after expenses to know the value of the property. It’s just that simple. Go find out what you need to know. Good luck.

import · September 22, 2006, 10:57pm

Posted by Paul of NYC on September 22, 2006 at 22:57:46:

Hi everybody,

I’ve been reading the posts and articles hear and have been getting very
excited about the opportunities with mobile homes/parks!

Since I live in Manhattan (NY not KS) there aren’t any mobile home parks (that
I can find) that are in a subway’s ride of where I live. So I’ve been searching
the net for deals in areas that I have family that I regularly visit.

Which brings me to my subject: I’ve come across a small park (7 MH lots & 20
RV spaces) on a huge parcel of land (60+ acres), wooded and next to
(bordering) a lake used for recreational motor boating. It is on the Great
Plains and the lake gets a lot of tourism supposedly. The rest of the area is
rural and there is a lack of rentals in the area. It is not near a major city. It is
50 miles to a minor one.

There are no structures on the property. There are 7 wells valued possibly at
$10K a piece.

The park was run recently, by a couple that set up a convenience store on the
land in a double wide. The nearest truck stop from Memorial Day to Labor
Day sells $200 a day just in bagged ice to tourists.

The asking price is $175K. The seller is motivated and willing to finance the
property with 1/3 down. I?m sure he would take less, or more favorable terms
for the buyer.

My questions to you are:

How would you figure out the value of something like this?

What are the RV spaces worth? Can they be converted to MH spots and how
easily?

How difficult or easy is it to put more MH lots on a huge piece of land?

Does this sound too much like something I would have to move there to set
up?

What other questions should I be asking?

This was such an odd property I felt it was worthy of the academic
consideration of such a worthy & knowledgeable discussion group.

Thanks in advance for any responses. I?ll try to get any questions you have
about it answered as well.

Cheers,

Paul

import · September 26, 2006, 11:12am

Re: Found: Non-Performing MHP (Long) - Posted by Joe

Posted by Joe on September 26, 2006 at 11:12:53:

I’d want to see the rent rolls.

import · September 25, 2006, 1:52pm

Re: Found: Non-Performing MHP (Long) - Posted by James (Ala)

Posted by James (Ala) on September 25, 2006 at 13:52:42:

I think the wells are interesting. How did the figure $10k come about? Out west (as opposed to east of the Miss. R.), water rights are not based upon who owns the land next to the waterway. Thus, people think of water differently.
Also, there usually is not as much water on the Plains as people are used to in the East. Perhaps, there is some cash that can be “flowed” selling water to farmers, ranchers, etc.
James (Ala)

import · September 23, 2006, 10:40am

Re: Found: Non-Performing MHP (Long) - Posted by Tim

Posted by Tim on September 23, 2006 at 10:40:07:

Three things immediately come to mind, not necessarily in this order:

Zoning?
Sewage?
How do you pay the note and the development costs without any cash flow?