Hello all,
We have purchased our first real estate investment in June of this year in southern Colorado. To say the least this has been extremely stressful on me as we have removed all trouble tenants mostly through litigation. At any rate working on turning this park around has been too much stress on my family and I. I would like to ask of this forum for two things, one a rough evaluation for a quick sell, and two if its feasible to sell without a realtor. Below are the current numbers for the park.
Expenses
Insurence $4000
Trash $1320
Taxes $1338
Septics $500
Water $12000
Repairs $12000
Total Month $2597 Yearly $31158
(No management added as I am doing this myself)
Rent #1 Vacant #2 $425 #3 $650 #4 $400 #5 $500 #6 Vacant #7 Vacant #8 $500 #9 $500 #10 $450 #11 Vacant lot #12 $500 #13 $480 #14 Vacant #15 $500 (doublewide) #16 $700 (doublewide on large lot with garage)
Gross Rent: $5605 Yearly $67260
This park has 2 double wides, one with a large private lot and two car garage. Rents nearby for SFH 2 bed 1 bath go for $800-1000. Needless to say we are way under market. We have multiple people interested in renting but dont have the capital to turn around our vacants. Park is yet to be submetered and could use rent increases. As I said I’m not cut out for the stress of landlording and would like to sell. A Denver brokerage advised a selling price of $450-480,000 would be possible. Our plan was to list on this site and loopnet for $430,000 in hopes for a quick sale.
First question is this a good price based on the information?
Being that we’re dropping the price to $430 we would like to do it on our own in order to save the realtor fees. Is this something an average Joe can pull off?
Lot rent amount
Market lot rent amount
Age of the park-owned homes
Size of metro area (consult www.bestplaces.net)
Median single-family price and 3 bedroom apartment rent
I’m more than happy to help you evaluate it, but I also want you to make sure that you want to sell it since you’re already done the hard work. My bet is that you are getting stressed about the rental homes, and I want to see if there’s another possible solution in selling those off and just collecting lot rent.
We do not charge any lot rent currently as all are POH. The park behind ours is $275 lot rent. The next town over charges $375-400.
All homes are 70s-80s with one a 69 I believe.
The town it is in is Penrose, Co and has a population of around 4000.
The next town is Canon City with a population of
16500 which does have a super wal mart.
Colorado springs and Fort carson are about 40 min. from Penrose. Penrose has many residents that work on the Army base or in Colorado Springs as housing there is becoming quite expensive.
According to zillow the rent index for Penrose is $1248 and median price for a home is $329,000.
Not sure on 3 bedroom apartments as I was not able to find any but a 2 bed apartment in Canon City rents for around $800.
I have taken your home study course and very much appreciated it. We have talked about selling the homes and just doing lot rent, but we have decided to be content not being real estate investors as it takes a lot of grit and tenacity that I’m afraid I dont have.
Again thank you very much for your time and any input you have.
I believe one of the stresses of operating mobile home parks in your vicinity is it is easy to become focused on doing the work yourself rather than outsourcing. I would consider hiring contractors and a manager or “greeter” to help with onsite operations so you can focus on other things. Your income may be less, but you will be less stressed.
Thanks a lot for the reply and I very much appreciate your time. I had a lot of time to ponder that today as I was replacing some sub floor in a unit. I actually recieved a call from the MHP store asking about listing our park. I’m going to call that fate and we re working on our posting as we speak. We re hoping for a quick sale and close. From now on I’ll only be investing time in my family.
Had a decent amount of interest. Pulled it off and threw it on craigslist for a bit. We have a few people interested from that. We are currently waiting on proof of funds from a buyer to sign a contract.