This is my first post.Thanks to everyone who contributes so much to this forum.I’m just learning about the business and figured I’d get my feet wet by at least calling a couple of owners about their property to practice questions and building rapport with them.
I spoke with one owner about a property that seems like it might be a very good deal but want the experts opinions since I know very little other than some basics.
Here is what I know about the property.
The asking price is $250,000 down from $425,000.Owner says tax value is $375,000.He is in poor health and doesn’t want to deal with the property anymore.
It has 24 spaces including 24 mobile homes which are park owned(I know it’s a negative)Currently 19 are rented for an income of $9400 per month.The other five still need permits and need to be put on pads.The potential income with the five is $11- $12,000 month.
Owner claims expenses are about $2,000 a month.One possible red flag(let me know if this is normal) is that he gets the water tested every month for about $350.
I asked about maintenance issues and he says it could use some landscaping,painting and may have to buy a new septic tank soon.
I tried to see if I could get him to finance most of it.He seems to want a big chunk of it up front and may carry a small amount.
Please let me know the best way to convert the mobile homes into tenant owned and what good options I have on financing since I don’t have a big chunk to put down.Also critique this offering and tell me what else I should know going forward to find out if it’s a good deal.
Thanks