@laurennelson , as per your post:
- “Their records are a mess, so I’m not confident they’d even be able to provide everything we’d ask for in DD.”
As per your post this is a Mom and Pop MHP and Pop is dying.
I can tell you that they will not be able to provide you everything you ask for in DD.
Thus, if you need (or your Bank needs) specific items to calm your fears (or get a Bank Loan), you will not receive them.
We purchased a Turn-Around MHP from the Estate of a Mom and Pop in the Metro Area that we live. We could not even get the MH Titles at Closing (like when we were actually purchasing the MHP).
Previously to this Turn-Around MHP, we had looked at tons of MHPs (and wrote a few Offers). This was actually our third Offer (in 3 years) on this same MHP.
At the time we purchased our Turn-Around MHP we had “cut our teeth” on a Stable MHP. Additionally, our Turn-Around MHP was located physically close to our home (30 minutes).
As a First-Time MHP Owner you are looking at a lot of hurdles (like HUGE hurdles):
- Water = 2 Wells
- $ For Well Management = “Astronomical”
- $50K = Environmental Fines & Testing Fees
- Water Line = Neighboring County - 1/4 Mile Up Road - (First off will the Neighboring County even allow you to connect to their Water Line? If yes, how much would it cost to connect? The actual Water Line is 1/4 Mile up the road…then you have to run all the lines in your MHP.)
- NOI 2016 = $10K (This is with 53 Occupied Lots @ $275 Per Month)
- Sewer = Septic (Personally, I am not concerned about Septic…unless the wells supply the water…or the Septic has not been maintained. Both of these issues exist.)
- Environmental Issues = Shut Down A Section Of The MHP
- Electric = Submetered By 8 Different Electrical Meters
Sometimes a MHP is NOT a deal at any price, especially when you are a first time MHP Owner.
However, I find that a lot of MHP Buyers only want a “Cheap Price”. They do not look at all the costs associated with bringing the MHP up to a Stable Level.
I would not purchase this MHP at any cost based solely on the Environmental Issues and Electrical Submetered and those are not the only issues that this MHP has.
As per your Post there are 10 POHs which surely have Deferred Maintenance. Once the current Tenants leave you will be forced to dump lots of money into these POHs to rehab them and get good Tenants. Yes, you can give them away. However, do you really want the Tenants that will take them?
My advice is to:
- Run Away
- Run Away
- Run Away
However, from your post I get the sense that you might purchase it if it is discounted enough.
Please remember that some things are not worth owning at any price.
We wish you the very best!