“Park” Advice or Comments Wanted - Posted by Tim
Posted by Tim on June 29, 2003 at 11:09:19:
I have been reading this board about 4 months, have both of Lonnie’s books, & feel like I have a good grasp of the basic concept. I have been investing in single family homes for about 10 years, but this will be my first mobile home investment.
I am looking at 7 acres, there are currently 6 mobile home pads on it, rent is $120/month(standard for this area). The pads are located on about 2 acres, the other 5 acres are mostly a grassy field. Lots have individual water meters, & are on septic tanks. The only applicable codes are the state codes, but at a minimum 10 lots could be added. Four of the homes are mid 90’s models, the other 2 are early 80’s, none are park owned & all but one look good on the outside.
This park could be bought for very close to what the land alone is worth. I don’t believe the owner has been keeping any sort of records, & has probably been renting for cash. I intend to make 2 offers, one below the land value(30-35,000) as-is where-is, the other offer would be higher, but contingent on various financial records being provided by the seller. I think that a detailed request of records will motivate the seller to take the lower offer.
I have a good real estate Attorney, so I am not concerned with title issues, or property taxes. At a minimum I am going to require copies of all leases, & will get in writing from the tenants confirmation of rents owed & deposits held. This is part of a 10 acre parcel, so a survey will be required, & I’ll check with the health department about the septic permits & installation records. I am looking for any and all comments or suggestions, and would like to thank all contributors in advance.