I’m trying to buy a MHP 60 unit for $1,385,000 with 25% down. It has an NOI of $230,000 DCR of 3 and a cap of 17%. I been turned down because of non-paved roads, they are gravel which is normal in this area and all homes are parked owned. Looking for some help or direction because I thought the financials would be the most important thing. Thank you
Are you sure its not because of the POH ? What lenders are you pitching this to? Maybe a local bank that knows the market. Make sure the park owned home income is not capped in the valuation.
Agree with Marvel. That NOI may be accurate, but lot rents would need to be around $500+. If rents are lower than that, then home rent must be used and expenses are probably not being reported accurately.
That said, it’s not the worst price any of us have seen for 60 lots, assuming lot rents are decent. If you call enough banks I imagine you’d be able to get over the gravel road hurdle.
Give me a call tomorrow. I would like to review the deal and see what we can do for you.
Thats just it, there first question was is the park paved and then the POH? and they said we can’t help you. I never got to the NOI. I was a little dejected.
I will do that Kurt. Thank you
Sorry, I missed the part that said all POH. In that case the true NOI very well could be $230k if the owner is getting healthy rents for the homes.