Need Help On MHP Deal (5MH on 3ACRES) - Posted by Russell (AR)

Posted by lyal on February 05, 2002 at 07:50:09:

There is a wealth of info on the site accessible via the archives. Search for “mobile home parks” etc for pointers. Also search the articles on the commercial forum for a detailed description of how to do due diligence on a commercial property (that’s what a park is). Check out the money making ideas section for Doug O’s 4 part novel B-) called “Turning Mobile Home Parks into Communities” (that may not be exact but close).
All the best, Lyal

Need Help On MHP Deal (5MH on 3ACRES) - Posted by Russell (AR)

Posted by Russell (AR) on February 05, 2002 at 06:43:48:

Here is the story and any and all suggestions and opinions are welcome?

My father-in-law has found a small mobile home park near him (about 70 miles north of me) with 5 mobile homes on 3 acres. It is currently owned free and clear by this lady that hires Mexicans (rumored to be possibly illegal) to do work for her and allows them to rent these mobile homes while they are working for her. From what I understand, she has not rented them out for some time and the mobiles are in need of a lot of repair. She owns a lot of SFH and other businesses thus is not desperate to get rid of (not hurting for money). There is room for adding more mobiles on the land, but not currently set up for them (no utilities or such). The mobiles range from the 1970?s to 1990?s (not sure of the size yet). Each lot is set with its own water meter, gas line and electric pole. Since this is the country, there is a septic tank involved as well. Land goes for about $600/acre (not verified) as this is in the country. Rent goes for about $250 to $300. She is asking $32,000 for this deal and my father-in-law states that she is flexible and may carry the note. Please note that all of this information is through my father-in-law and we are scheduled to meet with this lady this Sunday morning to look at the park and mobiles and discuss this possible deal.

Does this sound like a worthwhile deal?
If so, what else I ask to see as far as balance sheets, making sure RE taxes and personal property taxes are paid, titles, etc.
Any suggestions are VERY welcome