I am in California, so as Frank says, starting out in the big leagues. Parks sell for 40k per space and up. I am interested in a small park.... 15 spaces, all filled with tenant owned homes, city sewer and water, tenants pay all their own utilities. Rents are $325/m. City paved street. One stick built house rented to mgr for $800/m, he is not paid a salary as this is reduced rent. So gross revenues of 68,100 annually.
Expenses: tax 7150
Total exp. 10,350
Asking price of $650,000
Reason for sale is health issues. Being marketed by a local RE agent. It's in a depressed county economically, but we have a vacation home there so I am familiar with the area. The homes look like they have been there a long time in that they have plants, porches etc. a pretty nice looking park for the area. Right across the road from a lovely lake.
So I am thinking of offering 575,000 for a 10 cap from the get go. What do you all think? Sue