Evaluate a mobile home park


#1

30 acres with 30 lots and 27 trailers, current monthly rental gross at $7500.
Asking $500,000.

Trailers are in poor condition, and need a lot of improvements.

I am interested, but not sure if it could be a deal.

Anyone could give me some suggestion? Many Thanks!


#2

Need more info on home ownership, infrastructure, and utility setup / condition. Is it within a good metro area and have high demand / room for upside rents? Tell us more!


#3

Dear Jhutson,

Thanks for taking time to answer.

This is about 50 miles away from the metro Atlanta area. Flood zone code is AE. Current owners inherited from parents in 2015 and want to sell and retire. Rents have not been increased for many years.

I think there is enough demand.

Is flood zone code AE a serious negative factor?

Many Thanks!

Wendy


#4

For a baseline valuation I would need the following information:

Number of occupied lots:

$average lot rent (not including any home rental, just lot):

Utilities: who pays?

City water & sewer? If not what?

The answers to these question will give a better indicator for valuation but does not necessarily mean it is a good buy. Just a price indicator.

Cheers,

Charlie


#5

@Wendy

Regarding your question on AE Flood zone, I responded to a similar question on Bigger Pockets last week, take a skim for some things to consider:


#6

@KurtKelley is your best source for any flood related questions. He’s the industry expert for insurance related issues.