I am looking at this deal. Not 100% sure about it. I would be greatfull for any advice or guidance on it.
Location is pretty decent. Near a golf course and middle class neighborhoods.
Lot rent 250-275 per month
17 Pads now. There may be room for more pads. Trying to confirm.
6 empty mobile homes- Park owner has titles for half. Others have to file for loss titles?
Present time- Only 4 paying tenants. So around 24% occupied
Has a 2 brm house on premises (managers office?)
City sewer and water
Park has gas and electric meters to the pads
About 50% clay and 50% schedule 40 PVC for sewer lines
Water pipes are mostly galvanized
Park in rough shape, needs 6 dead trees removed, trash clean up, 2 sewer risers are not sealed, needs new gravel, potholes filled and up to 3 of the MH removed if can not be rehabbed. They lost their license and new owner has to bring park up to standards for license renewal.
The owner claims that 2017 and 2018s financials were loss by a computer virus ?? He is waiting on IRS to get filed returns. Anyways this is what I have.
Financials: 2016 2015
Trailer & Park Rentals $22,027 $17,711
2016 and 2015 Expenses:
Auto & Travel $300.00 $810.00
Cleaning & Maintenance $725.00 $822.00
Insurance $400.00 $400.00
Management Fees $2,400.00 $2,400.00
Repairs $1,210.00 $1,720.00
Supplies $91.00 $760.00
Property Taxes $1,853.00 $2,488.00
Utilities $10,047.00 $10,197
Other $1,525.00 $1,411.00
Total Operating Expenses $18,551 $21,088
Net Operating Income $3,476 -($3,377)