More Info - Posted by Diane Hessin
Posted by Diane Hessin on September 28, 2003 at 15:22:37:
Hi,
I now have more information on the two parks for sale. I would
like to post the numbers and ask for feed back. Is this deal worth
pusuing further.
Park 1
11 Lots Rent 140.00 Month 10 rented 1 currently vacant
There is one additional lot that is small the owners have never
tried to rent it but it could accomodate a small mobile home.
Potential income 1,540.00/month 18,400.00/annual
Current Income 1,400.00/month 16,800.00/annual
Expenses
Waste Management Average 136.00/mo
County averages 140.00/mo
Security Lights 23.00/mo
Taxes 218.12/annual
Insurance owners currently insure 4 parks for 688.00 anually. For
estimation purposes I am going to figure the insurance and
250.00 annualy,
These figures give me
Income 1,540.00/Month 18,480.00/Annual
Expense
Wast Management 136.00/Month 1,632.00/Annual
County 140.00/Month 1,680.00/annual
Lightling 23.00/Month 276.00/Annual
Insurance 20.83/Month 250.00/Annual
Taxes 18.18/Month 218.12/Annual
Total Expenses 338.01/Month 4,056.12/Annual
I understand we need to reduce the income to account for
vacancies. I figure if we count on 2 vacancies that would reduce
the monthly income from 1,540.00 to 1,260.00 and the annual
income to 15,120.00 The expenses are 4,056.12 which leaves
11,063.88. The asking price for the park is 110,000.00 Is it
worth it?
Park 2
A total 14 Lots Plus a small house, one park owned mobile home
resides on one of the lots. The park owned home rents for
350.00 per month, 11 lots are occupied and rent for 165.00 per
month 2 lots are currently vacant.
Potential Income
House 295.00/Month 3,540.00/Annual
Mobile Home 350.00/month 4,200.00/Annual
13 Lots @ 165.00/Month 2,145.00/Month 25,740.00/Annua
This makes a potential monthly income of 2,790.00 However 2 of
the lots are empty so the monthly in come is 2,460.00 for an
annual income of 29,520.00
Expenses are
City (Water, Sewer and Trash) 550.00/month 6,600.00/Annual
Insurance 20.83/Month 250.00/Annual
Taxes 200.00/month 2,400.00/Annual
Total Expenses 770.83/Month 9,250.00/Annual
Currently the owners of this park pay the sanitation fee however
they state that can be passed on to the tenants currently 13.61/
home. The figures above include the park paying the fee.
Ok so the income from this park is 29,520.00 and expenses are
9,250.00. The asking price is 165,000.00.
Is this worth pursuing? I am a newbe I don’t yet understand all the
functions of the financial calculator. These parks are located 30
and 60 miles away from my home. If you all think it is worth
pursuing I will be happy to go check them out see what kind of
condition they are in and get more information. Please give me
your input.
Thanks
DianeH/NC