First off I have been in the residential single family rental business for almost 20 years. I have been there, done that so to say. I know all of the perils of rental property. I have been looking at MHPs for about 6 months. Tried to buy a local one in my town but have had no luck. I also happen to be a manufactured home retailer.
I recently came across one that is about a half day drive from me. It is in a small town (1000 residents), but is within 30 miles of some larger cities (75,000, 10,000, etc…). Still rural though. Seems to be a stable (not shrinking not growing area).
The park has been totally abandoned. There are 33 spots. 4 abandoned homes (1 decent usable home, rest are junk).
The owner died and apparently things went South pretty quick. I don’t really have the full story, but it is strange. It was almost completely full less than 2 years ago.
I made an offer of $60,000, they countered at $76,000, I countered at $70,000 with seller paying for half of an inspection of water, sewer, and electric system. They just accepted that offer, my offer also gives me 45 days to do due diligence period to figure out the what the deal is with the place and weather or not it can be put back into service.
The park is on the edge of the town, but I don’t think it is in city limits, BUT is on city sewer and water.
What are you thoughts? Very little overhead, and if it takes a couple years to fill it, is is not a big financial burden.