No offer yet; I just spoke to a seller over the phone today.He is an old man and wants to get rid of the park. He called me from one of my nice (paper) marketing letters sent out last week, sweet!
I am more concern on 3 cesspools that he claims has been working great ; simply put in some chemical every week or so. This 50 space park also has a pool which I don’t like due to liability and insurance.
Have anyone had any experience upgrading cesspools to city sewer, how much cost(it depends on area), time, hassle to tenants in small park ; can you do it overtime? I might ask the seller later about upgrading to see if he can pay for it or discount and give me a reserve to upgrade or something?
I will stop by his park on Friday and do some more quick pre-dd on site to see if it is a possibility.
Here is some details
7 cap (at 140K NOI - come out around 2mil asking price?) He didn’t name the price yet just the cap.
140K+= gross from his tax return
3 cesspools, no city sewer
1 sw pool
pay $1000/mo to manager with free rent?
park is paid off
tenants pay for their own gas, electric, water
park pay garbage
net about 140K/year or more, no expense data yet say 40%
no park owned home
has a house, $800/mo rent
all sw, 2 dw (1 dw for manager)
current rent $360, will raise to 380 in Dec., not including a home rental amount at $800/mo
100% occupancy with waiting list, ready to evict one tenant
Post Edited (10-24-07 19:04)