Hi All-- I’m close to having this park under contract and once I do, the seller is going to want to move quickly. So, I’m getting the word out a little early just to gauge interest and plant the seed.
Here are the basics on this park:
PRICE: $560,000 (which includes assignment fee); I"m trying to get the seller to finance $260k and the rest would be cash. Would that work for you if everything else looks good? Or would you prefer just traditional bank financing?
CAP RATE: I’ve got it at a 11.5 CAP. The seller’s figures show a 13.7 CAP. Seller shows an expense rate of only 20%, but I used Frank’s formula of 30%.
SIZE : 30 licensed lots; 21 are owner occupied at an average of $365/mo.; 9 are vacant lots (pads with infrastructure in place).
RENTS: No recent rent raises. Rates could be raised soon.
WATER/SEWER: City water/sewer. Water is sub-metered.
METRO: Population = 50,000, but only an hour to Lake Michigan in downtown Chicago; Median home price=$123,000; Vacancy=8%; 3BR Apt.= $1010/mo.
CONDITION: Nice park. Gravel roads. 80’s houses. 4 houses are just barely in a flood plain and may have to get moved 10’ or so if the bank has an issue with them. But they are grandfathered in and the tenants have been there a long time.
If interested, please email me: email@example.com.