I'm currently under contract on a 33 pad park. I'm a first time buyer, and would appreciate any feedback. Below are the details.
1) Total number of lots: 33
2) Total number of vacant lots: 2 (vacant, meaning there is no home, not even an abandoned home)
3) Total number of abandoned trailers that belong to park: 0
4) Total number of abandoned trailers that do not belong to park: 4 (I plan to seek title to these). The reason why this is so high is because the current owner is currently renting two of them out. From what I have read, this is illegal. I have stated in the contract that these tenants are to be evicted before the closing date.
5) City water and sewer.
6) Total number of occupied trailers owned by park: 7. Average rent is $385.
7) Lot rent tenants: 20. Lot rent is $150. I think the market would support $175.
8) Total population of Metro area (45 mile radius): 200,000
9) Quality of neighborhood park is in: Middle class. The neighborhood is a big sell on this. The park is literally surrounded by single family homes, and they are well cared for. No busy roads. A 3 BR house right behind the park recently sold for $125k.
10) Average rent for 2 BR apartments in the area: $450/month
The park is grandfathered in, and there is no room for additional pads. All of the trailers are single-wide and are approximately 14' wide and range from 55-70' long. Taxes are a very low $2000/year. I live a few hundred miles away, but am experienced at managing property (although never a MHP) from a distance and consider myself good at putting management systems in place. The park has not been managed well in recent years, and I think that with enforcement of the park rules I could raise lot rent to $175 in a couple of years. Roads are paved and for the most part in good shape. The longest stretch of road is city maintained.
Any thoughts are appreciated!