Posted by Tom on July 03, 2003 at 19:46:40:
To give a few details:
16 spaces all rented,
8 of the homes are rentals
The lot rent is $110 a month witch is slightly below normal for this area (most parks charge $125)
The rentals account for another $1,865 per month
This is all before expenses of curse
After breaking down the NOI the value the park (without rentals) is around 140K (using a 12% cap rate) There is also a 30x40 high ceiling building on the property the owner uses it for storing his ?stuff? I don?t need the building but I will find someone who can use it maybe the current owner, for a price of curse.
The owner named a price of 240K we haven?t done any negotiating yet I wanted to gather as much info as possible before I get into it.
This area of the country has only a few MHP over 50 spaces but many parks in the 10 to 30 range. They were developed thirty to forty years ago for 10?x 50? or 60?homes. That being said the parks are somewhat crowded today with 14?x 70? and 16?x 70? homes. This one was developed in the late 70?s early 80?s it is crowded in a fue spots but not as bad as many in this area.
Maybe this little bit of info. Makes things clearer