I am scheduled to go to the MHU in February 2017. However, an opportunity was brought to me that I thought was a good deal. So I took action, I bought the park.
I suspect @frankrolfe , as a student of yours you would have wanted me to ask you first if it was good vs after so you didnt have to back peddle me out of a mess. -----in advance Sorry!
It has no income today however I think (I may be completely wrong, as I dont know what I dont know) it has great potential. The terms in which we bought the land and the potential we believe it has, is what drove the decision.
It has 22 spaces with all city gas/water & electric hooked up.
After survey discovered additional expansion opportunity up to 39 spaces
6 homes left standing - all in really bad shape. We will demolish these
No other trailers on the land
Potential to develop an additional 17 spots. No utilities there yet
Purchase & Terms:
12k out of pocket to receive quit claim to property from brother #1
15K back taxes due by March 31, 2017. City is willing to waive some of these taxes
$5200 due to brother #2 by June 2017. He is financing the remaining $77000 @ 20 year amortization; due in 10; 1 time payment a year of $5200 @ 3%.
No metro area showing on bestplaces.
Closest MSA is Omaha NE (1 hour) & Sioux City Iowa (39 minutes)
Low unemployment rate in all locations including city park is located
House prices in area $79,000
3 bedroom rents = $750
2 large employers coming into the park city.
-2nd phase for 1 company. However, their people come in build and no other people are needed to run the location
- 2nd new company, will be moving people in to build & remain in town
Fill 22 spaces with Owner occupant homes
50% brand new 3 bed/2 bath 1400 square foot homes bought through us, as dealers
We tack on $20K to each home purchased through us
Local bank/provider has agreed to be mortgagor for good buyers
50% can be owner occupied brought in homes as long as it passes our criteria, & less than 5 years old
We will collect lot rent of $250-$300
Expand to small 8 space area first
Expand to 11 space area second (as this requires a new road)
How bad did I screw up?