I have a park under contract. I continue to drop by and talk to the current management and find new problems. The rent should be $18,000 per month full, but with past due collections, evictions ect… it is around $14,000 with $2900 in utility bills. The purchase price is $600,000. The park is rural with 44 park owned homes 34 rented. Six homes need $2000.00 in rehab…Any thoughts?
My first and only thoughts were to do Due Dillegence. The archives tell you all you need to do.
There is way too much info missing regarding expenses to begin to determine value for me.
There are methods to ball park the price using income but even then you will later need to know what all the expenses are, how much they are and if/how they can be reduced.
Utilities are only a portion of your expenses, especially with park owned homes. Taxes, insurance, maintenance, repairs, etc. are just some of the costs you will need to look into as well as physical due diligence of the homes, land and infrastructure.
It can seem like a lot of info but most of it is easy to obtain. Some are harder to find than others but I have learned that the ones that are harder to find out are usually the ones that hurt the most if you don’t.