Need help advice with buying first park

mobile home university
1

I am buying my first park. Not sure if i am doing it the right way. I have experience buying and selling mobile homes with land in florida. Sucessful doing that.
Terms i agreed to as follows. Purchase price of 110000. Down payment of 20000. Balance to be paid as follows. Seller has borrowed money to fix property. I am to pay off loan at 800 a month. Her loan is for 70k. Seller to give other loan at 10 percent interest on other 20k.

Park has all city utilities. 7 pads. 1 occupied at rented at 575 a month. The other 4 have mobile homes. 2 need rehab, the other 2 are new. Other 2 pads no homes. Impact fees of 18000 for sewer and 4500 for electric need to be paid. Plus rehab of 2 homes.

Park when up and running should net me after expenses 3700 a month. Any thoughts.

Scott

2

Also park in rural area. Town of 14000 people. Airforce base 10 minutes away. Major city with 300000 people 45 minutes away. No other mobile homes in town.

3

Hi there. Why do you like this deal? On paper it’s not good as the MHP will not even be able to pay the debt service.

4

The numbers do not work based on the income at this time. You are paying for future income that may not materialise.

5

Scott,
If the seller does not pay off her loan of $70k. Your out in the cold with nothing. If she borrowed $70k for repairs how do you know their are no outstanding liens for materials and labor that go with the property. Its worth about $82,500 based upon full occupancy.