MHP Ideas, sugestions, please??? - Posted by Ed Ortiz
Posted by Ed Ortiz on March 08, 2000 at 24:14:06:
Hi my name is Ed,
A couple weeks ago while doing some work an my mobile home(rental). I found out that the lady that owns the park (4.2acres and has 33 spaces with 26 of them in use)is tired of holding on to it. She is 72y/o and her husband died living her in charge of this property. Well, she lives an hour from this area and decided to hire a broker/property manager to take care of the property for her. He has been doing this for the last 6 months and has fixed some of the things that affected the “bussines” for example he has fixed water leaks which have taken the water bill from 1700.00 average to 1300.00 (confirmed by statements) by fixing leaks and enforcing no car washing policy. The lady told to him that she was thinkig about selling the property a couple months ago but they did not list it for sale(broker does prop. mgmt.only. but charges her 6% if she sells) and in a conversation with him I asked if he thought that the owner might be interested on selling. To which he answered that she had talked about it before but she hadn’t mentioned it any more.
To make the story short she had a:
15 year 42,500 note at 7.5%
27,900 left on it.
Lady (owner)signed my offer to assume( giving her 1,000.00)and paying brokers fees, but individual holding note(heirs actually)do not want mortgage to be assumed(tryed talking to them). But also, no D.O.S. seems to be present on paperwork.
Appraisal by tax district 43,000.oo but comps run around 60,000.00. Land alone worth 45,000.00
Talked to a banker and after doing the paperwork he says his willing to finance 70% of the loan amount. Very nice!!! He gets a 1st mortgage on a property @ 33% of F.M.V. and I get the privilege of paying 10% interest for 5 yrs.
26 lots @110.00 a month = 2,860 (145.00 average area rent without water)
Water =- 1,300 (possibilty of submeter)
30% mgmt and maintnance =- 858
taxes =- 90
loan = 384
Total = 2632
Also thinking about buying original note instead. Anyway there are so many things going through my mind right now…
Please, any guidance will be greatly appreciated. Feel free express yourself if needed.(slam) Also sorry about all my mistakes (still practicing on my english).