Posted by Kay on May 01, 2006 at 01:20:44:
No, not an Autozone. Sherwin Williams paint store. Thanks for the insight though. The owner has not thrown out an asking price. Just told me to shoot an offer. Come see come saw you know.
Mobile Home Park - Posted by Kay Baker
Posted by Kay Baker on April 30, 2006 at 20:17:23:
I have found a MHP with 10 park owned units. They are renting for 250 to 275 per month. The current owner also charges each tenant 37.50 for water. All of these homes are older 70’s and maybe one 80’s. It is located behind a business and there is not much land. Just enough to fit 10 MH’s in there. This guy has told me he is willing to sell but wants me to make him an offer. Is there a business model or calculation to make a good judgement call here? You can’t see the park unless you drive behind the business. Basically the guy stacked them on a fence line with trees. He does own the land and mobiles. Rents in the area are much higher for newer MH. Average lot rent is 150 to 180. Average rent on a nicer MH in the area is at least 400. The land value itself is probably only 10K. So those are the numbers I have so far. Any help would be greatly appreciated.
Re: Mobile Home Park - Posted by Robert_WV
Posted by Robert_WV on May 01, 2006 at 07:02:47:
Sounds almost identical to the one I bought last year. I only paid $72.5K for mine. Is the seller carrying? One thing in negotiations for you is that you will probably find there is noone out there that will finance such a deal. It is a small park and most will not loan on a park with more than 25% park owned units. Most banks will lend on land value only in a situation like this. So if the price is right and the numbers all line up, get the owner to carry with a down payment. If your rents are that low and you don’t have long term tenants, expect to do a lot of baby sitting. Make sure if you buy it, you go in strong and put out a set of rules for the park immediately. Good luck. Let me know if I can answer any more questions on a small park like this.
Re: Mobile Home Park - Posted by marius
Posted by marius on April 30, 2006 at 20:55:58:
Kay,
Check Ray’s comments here :http://www.creonline.com/commercial-real-estate/wwwboard5/messages/19834.html
Re: Mobile Home Park - Posted by osupsycho (OK)
Posted by osupsycho (OK) on April 30, 2006 at 20:54:49:
This park sounds a lot like one I know about (including further details that I doubt most know). Not to throw out where it is, but if the business it is located behind is an Autozone and it is right beside a cemetery then we need to talk. If this description doesn’t fit then it must just be coincedence. No matter what I can tell you that it does sound like it is going to be more of a job versus an investment. Homes that are rentals and up to 30 years old are likely going to have quite a few repair issues. Combine that with the type of tenant that they will attract and it will probably add up to quite a bit of work. I did a lot of research and thinking about this setup before and decided against it for some of these very reasons (and it was priced to high…)
Just my thoughts,
Jad