Any opinions appreciated


#1

Hello:

I am also a new investor looking for a MHp. I am experiencing the same frustrations ( incorrect / no information ) from owners, brokers etc, sky high prices on junk etc.

I found a small park ( 7 spaces). It is old, on city water but septic.

THe nice thing, is the “park” it is actually 7 mobile homes lined up on a village street.

all are older ( over 25 years), but are tenant owed.

Management should be very easy, long term tenants. Rents are at least $30- to $50 under market (owner has not raised rent in three years).

Cap rate is 10% on current numbers, but could be raised to 12% range with rent increases.

The problem, is it worth monkeying around with a park this small?

It seems resale someday will be very difficult if not impossible. The trailers are old and can not be replaced ( zoning). THe land by its selve is not worth much. The asking price is $98k, no owner finance and a hassle to finance a commercial loan under 100k. any thoughts?


#2

The deal killer here is the zoning. If you lose a home due to fire, abandonment or any other reason, you’ve lost that income stream. Since it isn’t a land play either, I would look for something else.

Steve