i have the opportunity to buy a park that is part of a major MSA that is 90% occupied, city bills all uitilies directly to tenants (water, sewer, etc…), almost all tenant-owned-homes, etc… The lot rents are $150/mth when the market rents are $300/mth+.
The long-time owner collects a % of the rent in cash and doesn’t claim it on his tax returns… so traditional financing will be tough right now. He knows this and while he wants all cash, is open to do some short-term seller financing for me to get clean books, get financing… and then pay him back.
My question is how much can i raise rents the 1st year? Is $100 doable? $150 too much?
Thanks in advance! Looking forward to hopefully meeting some of you at the December Boot Camp…