I want to sell my MHP in Augusta, Kansas, zip code 67010. I own the park. I am not a broker. I am trying to save the commission by selling it myself.
2 POHs are on rent-credit.
1 POH needs a lot of work.
1 TOH, tenant evicted, need to take possession of home.
16 of the TOHs are owned by the previous owners (husband and wife). I have an agreement in place with them that should transfer to the next owner. According to the agreement, they are not allowed to pull homes out of the park. They get 2 months free lot rent if a tenant moves out, but they only get 2 months free after 12 months of fully paid rent. If their tenants do not pay lot rent, then they are responsible to pay it. I will share the agreement with you.
2 vacant lots
- One vacant lot is rented out to a tenant for $75 per month.
- The other vacant lot is divided in 2…
-1/3 is rented out to a tenant for $30
-2/3 is rented out to a tenant for $70
Lot rent: $190.
I bought the park in 2016. I did not raise the lot rent until 2018. In 2018, I raised the rent by $5. I have not raised the lot rent since. I think that the lot rent is probably a little under market value.
All public utilities. No well. No septic tanks. All utilities including garbage billed directly by city/utilities company to the tenants.
There is a lift station which I believe covers 6 lots that are furthest away from the main connection. It was repaired in 2019.
Asphalt road in average condition, few potholes.
Manager is an elderly single man, reliable and honest. Does have some minor health issues, but that does not stop him from doing a good job. He gets free lot rent. There is also a garage in the park which I let him use for free. I pay him a little extra for mowing. He is very helpful.
Tenants pay their lot rents directly into my LLC’s bank account at the local Emprise bank branch. Lot 1 pays $190.01, lot 2 pays $190.02 etc. It makes it easy to keep track of payments.
Questions and Comments:
- Seller financing. I would prefer not to seller finance.
- I bought the park with a loan from Emprise Bank, a local bank less than a mile from the park. They were very easy to work with. The terms I got were: 76% of the appraised value on the mobile home park, fixed @ 4.65 for 60 months (balloon) based on amortized term of 180 months with a $500.00 origination fee. I asked Dave Bisagno, V.P. at Emprise Bank if the new buyer can assume the loan, and he said, “That is not a typical transaction that our bank does. I would entertain the new buyer qualifying for the loan and rewriting with new terms and rates.”
- I have a phase 1 report and boundary survey that I will share with you.
- There is a Walmart less than a mile from the park.
- When I bought the park, there were 2 parcels. One parcel for the park, and the other parcel had a brick and mortar home on it which I sold off. Only the MHP parcel is left over.
- According to www.bestplaces.net
Augusta (zip 67010), Kansas
Wichita Metro Area, population 642,339
Unemployment Rate 3.5%
Median Income $49,159
Median Home Price $123,700
- Regarding the price… I am not sure. Please make an offer.
- Why do I want to sell? I have a full-time job. I want to focus more on passive investments. Having said that, this park is not labor intensive to run.
- If you have any questions, please let me know.