i found a turn around park that has great potential (good infrastructure - no current marketing or lonnie deals - some bad tenants). I am familiar with Corey’s 60/30 rule as a general guideline. However working the numbers - having 39 PAYING tenants out of 48 in a 113 lot park- I am going to be buying this park at a negative cashflow of $5500/mo including debt service. Lot Rents are $295mo. That means I’m 19 paying tenants away from break even.
AM I CRAZY TO GO AHEAD WITH THIS DEAL??
Is this the typical risk you take in a turn around park deal, if I feel I can fill up this park with better management and getting some MH’s in there for lease/option deals.
Current deal structure requires no money down with combo of bank and seller financing