I’ll be meeting a seller tomorrow and please need your inputs. First thing first I do not know anything about MH. I am friends with UPS guy who has a small park. We talk about it every time he comes with a delivery at our workplace, which is every day being a pharmacy. After finding out that I’m interested in MH he told me today that there’s a MH for sale 8 miles from where I live.
This seller has had this place for 30+ years, it’s on city water, new sewer last year (65,000) and in passing told me that she will carry a contract. I told her I don’t know anything about MH, so she will have to give me as much info as possible. I have an appointment with her tomorrow at 12PM and please need your feedback and inputs on what to look for and ask.
Thank you
The due diligence manual from Frank and Dave would be a great place to start. If you don’t have access to it, main questions are - rent roll - who is paying how much and are they current, who owns the homes, current expenses.
There is a bootcamp in just over a month in Denver. Ask Brandon Reynolds, the admin of this forum, if it will be virtual. I suggest you take the bootcamp before you buy a park. Can you tell us a few things about the park, such as:
How many lots does it have?
How many are occupied?
What is the lot rent?
How many tenants own their homes and how many are renting a home owned by the park?
Does the park or tenant pay for water, sewer and trash?
Is there an onsite manager? How are they paid?
How much are the taxes?
What is the asking price of the park?
When was it built?
These questions will get you started. You are welcome to PM me if you have any questions or need help…
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Add to the question list by @tmperrault above:
What are rents and occupancy levels in other parks in the area?
What is the park’s rental/occupancy level history?
What is average rent for two bedroom apartment in the area?
Look up statistics on the general market area to be aware of any growth or good/bad upcoming changes to the area.
AND… Why is she selling?
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