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.
MH park? What questions to ask? - Posted by roundhouse
Posted by roundhouse on October 14, 2003 at 20:34:21:
Located a MH park for sale, 12 acres, has 18 spaces, 5 occupied with park owned homes,$325 month, rest of spaces vacant, claims to have 15 spaces that have never been used, nor had sewer hooked up.
says has room for 17 adl.
Re: MH park? What questions to ask? - Posted by Johnnie (FL)
Posted by Johnnie (FL) on October 16, 2003 at 23:51:35:
Someone correct me if I’m wrong. I’m no expert, but isn’t this suppossed MH park for sale really 5 occupied mobile homes and 12 acres of undeveloped land that the seller is dreaming he will get a quarter of a million dollars for…?
There is a better way for the seller to calculate the value. Room for 17 adl., units? Well, that is about enough room to park 170 cadillacs, which cost $42k ea so let’s see, that adds another $7.1 million to the value, right?