For those of you looking to buy a MHP or partner on one. Here’s a deal that might fit your criteria.
Here’s the Basics:
46 lots - 29 occupied (14 of which have notes currently carried by park) + 7 vacant homes (also comes with park) + 10 vacant lots.
Zoned and approved for 14 additional lots which are currently undeveloped
6+ acres
Avg lot rent $281
Rents well below market and not raised in 12 years. Market rents avg $320.
Paved roads
City Water & Sewer
Electric billed direct to tenant
Water billed back (will cost under $5k to sub meter)
Park pays trash
Purchase price $519K
Seller is willing to carry; 10% 2nd @ 6%, 30yr amo, with 5 yr balloon
Assignment fee $40K
I have 7 days to request docs from seller, he has 7 days to supply
Upon receiving satisfactory docs from seller I have; 45 days due diligence, followed by an additional 60 day financing period + additional 30 days financing period if necessary
If you are interested in learning more about buying this assignment or partnering on this deal. Please email me at robertson.e.bryce@gmail.com so I can send you over an NDA. Once I receive the signed the NDA, I will send you the full package. After reviewing the package; you can contact me on my cell at 714.603.1394 or reply to my email. (I am in PST time zone, but will answer anytime.)
Here is a question for all the experienced park owners and economists. If the average family income is low compared to the national average and the median home price Is low, would those two figures work together better than an average median income and low property values?
Assuming the rental market has low vacancy and solid rents.
I’m just trying to get a better feel for the overal monster we are working with.
A metro with a low median income is typically lacking inherent economic strength resulting in a largely poor population. While this may mean you have a larger pool of potential tenants, it also means the area is likely in decline and less likely to have appreciating lot rents - I suspect you will sift through more applications to find a quality tenant.
On the flip side a high(er) median income has a strong(er) economy with appreciating lot rents, and offers higher quality tenants in general. Ones like this have more stringent zoning requirements meaning fewer MHP’s resulting in better demand for this type of affordable housing.
You will very rarely see a metro with a strong or weak economy have the same vacancies and rent rates - the stronger economy will have lower vacancy rates and higher rents. I will always opt for a higher median income metro if given a choice. This does not account for oddball situations like shale gas booms and government subsidized housing due to an act of god (e.g. Hurricane Katrina) that have “bubblish” economic housing demand curve shifts. You don’t want any of that anyway.