Mark,
Where are you located, that price does seem high. It seems like she is not charging enough per space including lot/unit/utilities.
I’m still a noob myself though. Do you know what size lots and type of sewer/water the park has?
Mark,
Did you run the park through that 60:1 rule I spoke about at the convention? You are going to have to find out what the average lot rental price is in the area in order to use that rule.
One thing you might consider is a joint venture with someone who has the ability to put up the down payment money. I’ve done this several times in the past.
I’m not sure about the pictures, I’ll ask our webmaster. If it isn’t possible to post pictures, you can put a link in your post that we should be able to click on and view the pictures on a page of your website.
Good luck and keep us posted.
Steve
Mark,
Congrats on making something happen. For those reading this post, Mark is taking the information he received at the “Mobile Home Millions” and doing something with it. I had the pleasure spending time with Mark in Anaheim and there is no doubt in my mind that he will have a few deals under his belt before the next conference.
One of the things I noticed about this park is the older homes. In most cases, I would stay away from a park like this because in order to make it more appealing you would have to put newer homes in the park. If the lots are too small the only way to accomplish this is using 2 lots for one home or possibly 3 lots for 2 homes.
I’ve been asked many times about the feasibility and profitability of a pure rental park. After reading “Huge Profits in Mobile Homes and Mobile Home Parks”, you know that I don’t like rental parks. They are maintenance intensive and the turnover is very high. However, I have seen some people do very well with small rental parks once they have long term, stable tenants.
Since you are in the mobile home repair business a small rental park might work, especially if it is very close to your home.
If that’s not what you are seeking, it might be a tall task selling these older homes even by offering owner financing. In some areas, this might work, but in most it would be tough.
I think it’s going to be very hard for the owner to sell this property unless she offers great terms. And, if I were a betting man, she will most likely end up getting it back from most of the buyers who deal in these parks.
Here’s an idea if you are interested in taking on this deal. Why not offer her $210K? 10K down and 2K per month for 100 months. The benefits to her are some money now and a steady stream of income for the next 8 plus years. If she goes for that deal, you have effectively purchased the park for $145K at a 10% interest rate. I might even know a person or two who would be willing to partner with you on it for the down payment.
Keep up the good work and the pictures and comments on your site are great.
Steve