First-time posting/potential park owner. Retiree offering me a 22 unit park for $275k w/ $50k down on a 5yr balloon (amortized 20yrs). He came up w/ that number w/ assistance of commercial broker(s). Only 6 (older) park owned units in place. 16 vacant pads. 1 site-built home (fair condition at $550/mo - maybe $25k value). All pads have city water/sewer (one master meter equally divided & distributed to tenants for monthly payment).
Unless my numbers are off, I feel it may be worth perhaps $500k(ish) at capacity. $250/pad seems very realistic for lot rent and I think could ultimately draw $300/pad. Unfortunately, 75% of the park is in 100yr floodplain. Noone I’ve spoken to in the community or county office has ever seen that area flood, but never the less. Elevation certificates are in place for each pad. Existing units are 1’ above flood elevation and future units would all be installed so their living space is 1’ above as well. I would likely self- manage. Flood insurance, taxes, and maintenance approximately $8k/yr. Test ad yielded 30-40 hits in less than 1 week. Entertaining CASH program to fill empty spaces. I feel like it may only be worth $150k or so as-is if a 6 unit park, but I’m not certain how to value the potential for the add’l 16 vacant spaces.
Thanks for any insight. Hopefully I can reciprocate someday once I have some experience under my belt.