So here's the deal details
I am looking to wholesale a small mobile home park in a small-town of Michigan.
*this is a "clean" park (aka- no park owned homes or onsite management)
*6 acres with 15 spaces- 7 occupied (owner occupied homes) and 8 vacant spaces already metered for electric
*electric is separately metered at each home
*water system: well and city sewer. (this size park does NOT have regulations and testing requirements for the well water) there is also a backup well
*lot rent: $210/mo (this is a little low for the area and has not been any increase in years)
* less than 20 minutes to Walmart
*long term tenants
*expenses 40-50% including: taxes, insurance, Lawn/Snow service, utilities, sewer and garbage
*'family business' (mom and pop) that had health problems and never put any effort into marketing or adding homes. aka- it's been maintained but not reached potential
let's talk Numbers: (and see attached)
purchase price $80k (cash at closing)
returns $9-10k + annually
COMPARE that to a single family rental property!!!
lots of room to add value to this park- the area needs affordable housing.