Posted by Dr. B.(OH) on October 14, 2003 at 22:14:46:
I am a Lonnie Dealer and haven’t bought a park (yet), but I considered one.
On the park you mentioned, assuming an unlikely set of good terms-30 yr, 8%, 100% financed deal, the current income is over $2000/yr short of debt service alone. Not to mention, most people on this board recommend splitting the land and lot rent from the MoHo values and income.
If you have the $$ to bring in 13 homes, on top of the park price, you’d have to rent these things forever (but they deteriorate and depreciate as fast as a Chevette)to come close to getting your money out.
The “room for 17 adl.” is fantasy. You’d have to get approval and licensing for additional spaces, development cost, and maybe a $250K sewer upgrade if not on public sewer.
Read the following post for an eye-opener. http://www.creonline.com/commercial-real-estate/wwwboard5/messages/667.html
I didn’t walk through the post plugging in the assumed numbers but I’d adjust my rear view mirror and hit the gas.