Help - we're thinking of buying a newer mobile home park


#1

Hi,

  My brother-in-law and I are negotiating on purchasing a five-year-old park that just got foreclosed on.  It has 83 lots, streets are paved with driveways, lots are 6000 sq. ft each with electric, public water and public sewer.  It has 14 fairly new mobile homes on it that are renting for $500 and 3 tenants with their homes on lots paying $200.  We're far away from this park and would need management.  We're told the cost to redevelop it would be $20,000-$25,000 lot.  We're can purchase it for slightly under a $1 million, and the bank will finance it at a great rate with 20% down.  There is a management company currently taking care of it.

  Our plan is to buy fairly new mobile homes and fill the park.  Is this worth purchasing?  All advice will be greatly appreciated!