I am looking at purchasing a small mobile home park. The property consists of four 50’ x 130’ lots. There are 11 mobile home hook up spaces. Seven spaces are occupied. Space #1 is owned by the seller and is rented. There is a 1978 mobile home which is included in the sale. The manager is in space #8 and pays no space rent. The approximate gross income is $1,290 per month. The owner pays for water, trash, taxes and insurance. These expenses run approximately $230.00 per month. The seller is asking $249,000 for the park. Can someone advise me if this is a fair market price and if not, how could I negotiate the seller down.
What is the lot rent?
The lot rent is $180.00.
Anyone with any answers? Thanks.