I just entered into a contract couple of days back to buy a 12 lot mobile home park . It is in a city with population of 300000 in California within an hr driving distance of where i live.
Number of lots : 12 ( all lots occupied except one )
Number of brick homes : 2
No homes owned by the park except two brick homes.
Lot Rent per month : $425
Brick homes rent per month : $1050
Total Rent per month : $5725
Private septic tank
Master metered electric and gas
Well water pump
Rent includes water ,sewer and trash; Tenant pay for Electric and Gas
Established in 1950s. Current owner bought it in 1994. Retiring and so selling.
Apprised by County for $450K ( land $375K and the rest for improvements ).
Purchase price is $410K with $2K credit for pest control
In 2-3 years, PG&E plan to upgrade electric and gas lines inside the park. So master metering of these utilities will go away and tenants will be directly billed by them.
This is my first park with private utilities. Can someone help to evaluate this deal ? I already bought Frank’s DD manual but would appreciate second opinion.