I am a new investor looking at buying my first park. I can’t go to the boot camp because of a schedule conflict, but did buy the audio mobile home millions IV ( haven’t got it yet)
I am in New yorkstate and want to purchasee a park here. a few questions.
How far away from your home is “too far”, especially for a new investor with another full time business.?
Most of the parks I have looked at have septics. Are septics a deal breaker? I see many investors don’t want a MHP on septic.
Most also are on well water. This concerns me since they need to be tested each day and are subject to inspections by the state health department. I would not want to have a problem with the water.
Again, most parks have both well and septic, so I must not be that bad, Correct? any thoughts would be helpful.
Last, what is a reasonable cap rate. Most of the financial information I have seen is flawed. It shows lots of income and seems to leave off expenses that I know will be incurred ( auto, legal, adverstising, repairs and maintence are just a few)… I am a cpa so I can look at the numbers and figure out the ommissions and overstatements.
If a seller is asking say $400,000 for a park with $31,000 of realistic annual cashflow, I think it is over priced by about $100,000. Am I crazy?
I would want at least a 15% return (cash on cash) or even 20% for the risk and hassle. Is this unrealistic?
any insights would be appreciated.