Posted by Don-NY on July 16, 2007 at 09:02:43:
I have yet to see an all electric home in my area. The northeast winter utlity bills would break ya. I am installing a DW right now and only had to put in a 100 amp service.
Help on price for MHP Please - Posted by Shawn Morelan
Posted by Shawn Morelan on July 15, 2007 at 14:50:38:
Hello, It has been a while since I have been to these boards, and I am afraid I need your help again please.
I am looking at a MHP and need some advice on how to evaluate for an offer. There are many questions to be answered before there is an offer, but I would like to know where it should fall. Here is a quick rundown.
Lot Rental Only
Just under 11 acers
60 pads - 47 rented at $225 per month
Individual septic / MHP has a well and supplies water at no charge.
Yearly Expenses including all taxes and insurance right at $18K a year.
Value land at $15K per acre for computations. Approx $165K value in raw land without any improvements. All 60 sites setup and ready to go with power/water/septic.
UPSIDE
Fill remaining 13 sites with rental or lease to own units. I prefer to stay away from Park Owned but I could do a few to get the park moving.
Property is in a good location for future development - high appreciation location
Close to my home
Already bringing in approx $10,500 per month.<< Will this help with financing? Can the income stream be used as collateral? Any shot at no money or very little down if we have excellent credit and equity in other properties?
Could charge for water- will have to see how unit is setup and what condition it is in. There are local companies that will tap the well and maintain the unit. The only problem is, we would not be able to charge for water, but it is also not our responsibility which seem like a huge plus.
Coin Laundry adjacent to park - easy walking
Thanks for your help!! I appreciate it.
Shawn Morelan
Re: Help on price for MHP Please - Posted by Anne_ND
Posted by Anne_ND on July 16, 2007 at 04:25:03:
Shawn,
I’m not an adherent of the 60/30 rule. You can buy parks that do not conform to that rule of thumb and still make good money.
Having said that, you have problems with your numbers. Any park on well and septic is going to have real expenses of 20-30%, minimum, probably higher. Realistic expenses for this park will be closer to $35-45K annually. Find out what they are not telling you.
As for the well & septic issue, find out what your STATE (not just county) rules are for providing well water to your community. The state may require you to drill a second well in case the first one cuts out, which is the case in GA. It could also be that the sale of the park will trigger changes in the laws with regard to wells, so check that out.
I would expect this seller to be willing to offer some kind of financing because of the well situation- ask several times in several different ways, find out what they NEED, not what they want.
Good luck, it’s an exciting ride.
Anne
Re: Help on price for MHP Please - Posted by Jen
Posted by Jen on July 15, 2007 at 20:57:03:
I have often wondered what someone would do that owned a park that had a well for a water source. Especially if utility water was not available. Suppose the water supply became comtaminated some how even if new wells were drilled. You would be out of business and the bank would be calling the loan. Why would anyone risk buying a park on a well system?
Re: Help on price for MHP Please - Posted by Rolf
Posted by Rolf on July 15, 2007 at 18:55:48:
The 60/30 rule puts the price at $722,250.
47 X 225 X 60 = 634,500
13 X 225 X 30 = 87,750
Total = 722, 250
How close are you to this price?
Look carefully at the electrical. With such a big piece of land, you can
put in lots of DWs but will need 200 amps. Do you have them or must
you upgrade the electrical.
Septics and wells scare the hell out of me. Is there any possibility of
municipal utilities in thefuture?
Any MH dealers within a 30 minute drive? If not, why not.
Some things to think about. Hope this helps.
Rolf
Re: Help on price for MHP Please - Posted by Karl (Oh)
Posted by Karl (Oh) on July 15, 2007 at 21:55:08:
Rolf,
Just curious. Why would doublewide lots have to be upgraded to 200 amps? There are plenty of 100 amp doublewides out there with gas furnaces. If the home isn’t all electric, 100 amp is typical. Is it not?
Karl
Re: Help on price for MHP Please - Posted by Rolf
Posted by Rolf on July 15, 2007 at 22:48:46:
Karl:
You are correct. However, there are also many all-electric MHs out
there and some areas are simply requiring this as a condition of
moving on DW. I had an electrical engineer check out my community
before I bought and I raised this issue even though I currently have all
SWs. He said the local agency that approves new placements would
probably require me to upgrade to 200 amps prior to their signing off
on a DW.
My other thought on this was to use the whole 200 amp thing as a
negotiating ploy to get a better deal. My community was advertised as
being able to handle DWs yet they glossed over the amperage
question. This was one of the points I raised as a way to negotiate a
better price. I don’t know if I will ever get any DWs but at least I know
about the problem was able to point it out to the seller.
Hopefully, I will never have to worry about it.
Rolf
Accurate info - Posted by Karl (Oh)
Posted by Karl (Oh) on July 15, 2007 at 23:40:04:
Rolf,
The reason I posted was that you told Shawn he would need 200 amp service to put in doublewides. Your personal situation aside, that’s not necessarily true, correct?
In my area perhaps 1 out of 20 homes is 200 amp all electric. The rest are 100 amp electric and gas. We move doublewides into the parks all the time with 100 amp service.
But we have no idea what Shawn’s area requires. Something for Shawn to look into.
Karl