Is there any reason i shouldnt lock this down and send a contract.
2million+ Metro, 136k+ Median Home Prices in the town and the Metro is $142k Median
Neighborhood is decent with a farm on either side and a gas station on the main road.
27 Occupied Mobile Homes, 2 of which are POHs from 90s and 00s. Only one vacant lot.
City Water billed to tenants and Septic.
There are also 3 non-mobile home rentals:
Commercial building, house with 2 car garage, 2br apartment
Total Other Rental Income: 25,200 x .5 expense ratio = $12,600
Total MH Rental Income with 305 lot rent= $98,820 x .6 expense ratio= 59,292
Combined MH and Other Rental Net Income: 71,892
600,000/71892=.119 or 11.9 cap (note he is asking $600k)
He told me that he had someone else come by and look at it and given our overall conversation and demeanor i dont think he was lying. Should i send him an agreement for less than ask?
He is not willing to owner finance.
Notice that i put the house, apartment and commercial building at 50% expense ratio. is that reasonable or should i figure that another way?
Thanks for any help!
Joel from Chicago