Brief background on me, I am in the finance industry but I'm looking for something with more flexibility and equity stake in a business. I have spent the last six months reading this forum and others, reading Frank and Dave's books as well as meeting with REI clubs, attorneys and CPAs. I feel like I have a pretty academic understanding of the business but I won't really learn unless I take the plunge at some point.
Here are the park details:
Lots: 15 (I'd like to start small without any partners for now).
NOI is around 45,000
Haven't discussed financing much but I already confirmed he will finance a good portion of loan.
Pros: 100% occupancy(could be a con I guess, not as much upside)
- Water is not sub metered, owner is paying over 5k/year. Easy fix.
- About 30 dollars below market rent per lot. I think I'd start with 10 dollars per month + bill water to them.
- City water
- Park looks to be in decent condition based on pictures of every unit.
- Rural area, but I placed a teaser ad on Craigslist and received about 2-3 emails per hour.
- Individual septic tanks.
I am just wondering if anyone sees anything glaring that I am missing. I'd like to tie up the park and start due diligence pretty soon. These are just big picture details. I want to make sure all of this looks good before I move forward. Thank you.