Posted by amills65 on October 22, 2003 at 07:50:23:
Thanks guys for the input. I agree that the price is too high. Wanted to see what everyone else thought. I hope to talk with the owner soon, and see what his position is. It’s been for sale for some time now. I still have more homework to do.
The return on this investment seems really low to me.
The only way this park would be a good deal is if:
Rent is currently under market value (at $300 month, your ROI would reach 8% ROI), and you feel you can increase rent substantially in the first year or two.
If you can get this park for substantially less than asking (if you buy the park for $400k your ROI goes to 9%).
A combination of the above.
** 45% expenses is the national average for rentals, this includes things such as vacant lots, maintenance, advertising, taxes and insurance.
probably the best evaluation… - Posted by Greg Meade
Posted by Greg Meade on October 20, 2003 at 15:37:59:
of a Park I have ever read is below: http://www.creonline.com/commercial-real-estate/wwwboard5/messages/667.html
The very real fear with a purchase at this time is there being too little money left after debt service. Perhaps read some of Chuck’s current posts and fig out what you need to make this a comfortable investment for you!
Posted by burtchd on October 22, 2003 at 11:24:49:
Chuck is right on the money with the fact that this is not a good deal(as is)“during this life time”. I definitely got a chuckle out his analogy. Also look at future appreciation via a “growing area”, job security of potential tenants, adjacent land to purchase,etc. Good luck with your endeavor.